Australia cuts iron ore price outlook for 2015 by 33% as glut expands

Melbourne

AUSTRALIA cut its iron ore price estimate for next year by 33 per cent as surging output in the world's top exporter outpaces Chinese demand growth, adding to a surplus.

Prices will average US$63 a tonne, the Department of Industry said on Monday. That compares with the US$94 a tonne forecast in September by the Bureau of Resources and Energy Economics, which is now part of the department. The commodity is set to average about US$88 this year, Monday's quarterly report says.