Citi destroys iron ore forecasts

Monday, 13 April 2015

Citi has slashed its iron ore price forecasts to reflect large-scale supply growth , weak demand and deleveraging.

2015 average forecast falls to $US45 vs $US58 a tonne.

2016 average forecast falls to $US40 vs $US62 a tonne.

2017 average forecast falls to $US39 vs $US73 a tonne.

2016 is starting to get close though I think $30 is probably now closer to the truth. Citi also cut Rio Tinto and BHP Billiton cut to Neutral vs Buy.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.