JPMorgan cuts iron ore price forecasts on growth in supply

Singapore

IRON ore prices will extend declines as growth in low-cost supply from the world's largest producers outstrips demand, according to JPMorgan Chase & Co, which reduced forecasts through 2017.

The steel-making raw material will average US$67 a tonne next year, 24 per cent less than previously forecast, and US$65 in 2016, down 23 per cent, the bank said in an e-mailed report received on Tuesday. So far this year, it's averaged US$98.95 a tonne, according to data from Metal Bulletin Ltd. In 2017, prices will average US$69 a tonne, 16 per cent less, the bank added.