Iron ore market seen facing extreme volatility

Perth

IRON ore markets are heading for a very bumpy ride in the next couple of years, marked by significant price swings amid the restructuring of the steel industry in China, according to the developer of a planned US$3.7 billion mine in Australia.

"Extreme volatility is going to be a hallmark of the market for at least a year or two " said Andrew Stocks, managing director of Iron Road Ltd, whose partner in the mine, port and rail project is China Railway Group Ltd, the world's second-largest infrastructure builder.