Iron ore prices have bottomed says the Australian Department of Industry & Science in the Resources and Energy Quarterly publication
- They forecast a decline next year (average $53 this year and $51 in 2016), but then a steady rise in prices through 2020
- Prices will average $60 in 2017
- Will climb to $75 through to 2020
- Says demand growth to accelerate, supply increases to slow
- "Prices are projected to rebound as higher-cost producers exit the market and world steel-production growth rebounds," the department said. "As production at Roy Hill ramps up and the major Pilbara producers reach maximum capacity over the next couple of years, growth in Australia's output and exports is projected to slow considerably."
Report is here and Bloomberg have a summary here
