Seaborne iron ore trade may fall with price decline in 2009
UBS analyst foresee that dropping in Chinese steel production from 500 to 420 million tonnes in 2009 will lead to falling 5% in seaborne iron ore trade. Also, benchmark iron ore price would drop 40% as a correction pricing. Coking coal price is expected to fall by 40% to 180 USD/tonne and will further drop to 140 USD/tonne in 2010.
However, analyst from Hatch Corporate project only 20% drop in iron ore price with 70% possibility in 2009.
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