From Bloomie:
Iron oreprices may tumble a further 15 percent and stay low for as long as three years as expansions add to a global surplus, according to former BHP Billiton Ltd. (BHP) executive Alberto Calderon.
Prices may trade between $70 and $80 a metric ton for two to three years as the market adjusts to increases in supply and a decline in demand in China, Calderon, a board member of Orica Ltd. (ORI), the biggest supplier of chemicals and explosives to the mining industry, said in an interview.
…“Right now the wall of excess supply is obvious,” Calderon said, ahead of a speech today to Bloomberg’s “Beyond The Boom: Mining to Dining” seminar in Melbourne. “At some point someone has to take a lead and say we are all just heading towards a cliff. At some point, common sense will have to prevail.”
“With this excess of supply, the price will be depressed beyond what people expect,” Calderon, said in the interview yesterday in Melbourne. “Until mines close it’s a world of $70 prices of iron ore.”
Correct. Funny how it’s so obvious in retrospect!
