The see-saw that characterises price action in the iron ore complex still has further to run, now down 16% after a near 25% surge in the start of the year. McKinsey and Co are calling for a fall down to $45USD a metric ton. Text from AFR via Bloomberg:
The commodity will trade between $US45 and $US50 a ton this year, eroding a first-quarter rally to as high as $US63.74 that was spurred by speculation demand growth will rise, Oliver Ramsbottom, a Tokyo-based partner, said in an interview. There’s no real improvement in Chinese steel consumption, said Ramsbottom, who’s covered commodities for almost two decades.