Iron ore prices slipped further towards the $US50 a ton level amid warnings that more volatility could be ahead.
Iron ore fell to $US50 a ton overnight, from $US51 in the previous session.
Iron ore could drop to $US40 a ton at some point in the second half of the year, according to Macquarie.
The investment bank recently published forecasts of a $US52 a ton average price for the September quarter, falling to $US48 in the December quarter.
Chinese steel production has been hitting highs but has to come down, with a looming de-stocking cycle meaning some output will have to exit the well-supplied market, sources said.
“Touching $US40 is entirely possible at some point in the second half. Iron ore will move around in quite a volatile fashion,” sources said.
Grade % Fe |
Origin |
Product |
load port |
destination |
June 16, 2016: cfr ($/ton) |
June 15, 2016: cfr ($/ton) |
June 14, 2016: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
50 |
51 |
52 |
62 |
India |
Fines |
FOB Vizag |
|
20 |
21 |
22 |
62 |
Australia |
PB |
Dampier |
Tianjin |
50 |
51 |
52 |
63.5 |
Brazil |
Fines |
Brazil |
China |
52 |
53 |
54 |