[miningmx.com] – IRON ore is tipped to retrace recent gains and return to $50/t by the end of September, said Bloomberg News citing comments by Capital Economics senior commodities economist, Caroline Bain.
“The catalyst for the renewed decline will mainly be on the supply side as the Australian producers continue to ramp-up output,’ she said by e-mail. Ore with 62% content advanced 3.9% to $56.04 a ton on Friday. It’s 4.9% higher this month, having bottomed at $44.59 a ton on July 8.
Weakness in iron ore prices is also supported by Goldman Sachs which said the mineral would average $48 a ton in the final three months of 2015.
Jeremy Sussman, an analyst at Clarksons Platou Securities, is more bearish, estimating an average of $40 a ton, said Bloomberg News. UBS forecast iron would average $51 a ton in the second half.
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