Australia warns of volatile iron ore prices as China curbs ease

Singapore

IRON ore is in for a bumpy ride in 2018, according to the world's largest exporter, which warns that the commodity may be whipsawed as investors and users navigate the cross-currents thrown up by China's efforts to manage steel production and rising global mine production.

While prices will average US$52.60 a tonne over the full year, they may be higher in the first half as China relaxes curbs on steel output, aiding demand, before easing in the second, Australia's Department of Industry, Innovation and Science said in a quarterly report on Monday. Last year, benchmark spot prices averaged US$71.36 after trading between almost US$95 and just above US$50.