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Iron ore slide to USD 75 will hit Australian suppliers - Analyst
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The Australian reported that iron ore prices will fall to as low as USD 75 per tonne next year and begin knocking out Australian sources of supply.

Mr Ian Roper, a former analyst with Rio Tinto who now works out of Shanghai for CLSA has made further cuts to his iron ore price outlook in response to a stronger than expected ramp-up in supply by Australia’s iron ore miners.

Mr Roper now expects the iron ore price to fall to USD 75 per tonne by September 2015, compared to his previous forecast for prices to drop to USD 80.

The benchmark iron ore price has already fallen by more than 37% this year to around USD 87.10 per tonne. While smaller iron ore miners are hoping that high-cost Chinese iron ore production will put a floor under the price and stop the price slide.

Mr Roper argued that prices would continue to fall and flagged closures would spread to international iron ore suppliers including Australia.

He said that iron ore was likely to follow a similar path to the coal price, which has been hovering at lows for two years as marginal mines battle to stay in production.

Source – The Australian

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