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Export and Import Levels
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| Iron Ore prices may halve in 2009 on slump - 20 Nov, 2008
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According to Australia & New Zealand Banking Group Limited Iron ore contract prices, at records after six years of gains, may halve 2009 as demand from China slumps.
Mr Mark Pervan, a senior commodity strategist at ANZ in Melbourne said that the benchmark Australian ore price for the year starting April 1st may drop 50% to USD 46 a tonnes from USD 93 a tonnes this year. He said that “China is iron ore's key market and conditions have deteriorated quickly. The iron ore market now has a major overhang of port stocks.''
Mr Pervan also cut price forecasts for coal, crude oil and metals following a two week visit to China and South Korea. Market conditions are He said that “worse than we previously thought. He said that 2009 is shaping up as a tough year, with many concerned that the slowing global economy will have material negative impact on domestic demand. He added that “Key concerns are based around the slowing China property and automobile markets, the excess domestic metal capacity growth through 2006 to 2007, and the weakening export market.''
Mr Lee Bowers RBC Capital Markets analysts said that prices may decline 25% 2009 to USD 68.40 a tonnes on cuts to steel production and the slump in cash prices. He said that “Our revised forecast is a balanced assessment of a market in the midst of huge global uncertainty. We consider the likelihood of benchmark iron ore prices falling more than 35% next year as being particularly low.''
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Currency Rates
05 Jan, 2009
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