Goldman Sachs lowers iron ore outlook

Singapore

GOLDMAN Sachs Group Inc took the axe to its iron ore forecasts, predicting that the price will remain under US$40 a tonne for the next three years as China's slowdown forces the global industry into a long period of hibernation.

Iron ore will average US$38 a tonne next year and US$35 in both 2017 and 2018, analysts Christian Lelong and Amber Cai wrote in a report received on Thursday. The new forecasts are 13-14 per cent lower than the bank's previous outlook.