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Iron ore will drop to $75 a tonne in the second half of next year as rising low-cost supplies from Australia and Brazil worsen a global glut and the slowdown in China’s property market curbs demand growth, said CLSA Ltd.
The commodity used to make steel will average $80 a tonne in 2015, down from an earlier full-year estimate of $85, and $75 a tonne in 2016 and 2017, down from estimates of $80 for both years, according to a report from analyst Ian Roper dated Monday.
By quarter, prices were seen at $90 in January-to-March next year, $80 in the second quarter and $75 for the final two three-month periods, according to the report.
