| Australia cut its iron ore price estimate for next year by 33 percent as surging output in the world’s top exporter outpaces Chinese demand growth, adding to a surplus. Prices will average $63 a metric ton, the Department of Industry said today. That compares with $94 a ton forecast in September by the Bureau of Resources and Energy Economics, which is now part of the department. The commodity is set to average about $88 this year, today’s quarterly report says.
Iron ore tumbled 49 percent this year as miners including Rio Tinto Group and BHP Billiton Ltd. expanded production in Australia, pushing the market into oversupply. Prices may drop to less than $60 next year as increasing output widens a glut just as demand growth falters in China..............................................Full Article: Source
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