Iron ore demand to weaken further

Merrill Lynch: Iron ore demand to weaken further

Merrill Lynch has revised the forecast of global iron ore demand downward, from 6.3 percent growth to 1.1 percent fall.
Merrill said the global iron ore market has changed from a tight demand situation during the past four years to an oversupply situation. Therefore, Merrill expected that the third largest iron ore supplier in the world, BHP Billiton might have to reduce its annual iron ore production by 25 percent in 2009.