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Barclays warns of an imminent sell-off in iron-ore, what’s for the Aussie?

The Barclays Research Team is out with its iron-ore price forecasts for this year, underscoring concerns that a major fall to $ 50/ ton could be soon on the cards.

Key Points via Bloomberg:

"Forecast an imminent sell-off for iron ore"

Prices will average $50/ton in Q2, before recovering throughout H2.

The bank cites three reasons for the price weakness:

  • The winter restriction season on steel production soon to end.
  • Port inventories of iron ore are at a record.
  • The Chinese economy is set to slow.

Forecasts average price of USD70/ton in Q1, USD50/ ton in Q2, USD58/ ton in Q3 and USD62 in Q4.

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