More supply is on the way and port stockpiles in China have been...

More supply is on the way and port stockpiles in China have been rising too, with holdings at a two-year high. In Brazil, Vale is bringing online the giant S11D project, which will add low-cost production, while in WA's Pilbara region, Gina Rinehart's Roy Hill venture is ramping up toward annual capacity of 55 million tons a year.

"We expect prices to fall back over the next few months and to fall further in 2017 as Australian and Brazilian producers continue to ramp up output," said Bain at Capital Economics. The two countries are the world's largest seaborne suppliers. "Our end-2017 forecast is just $US45 per ton."


Where is iron ore mined in the USA?

According to the U.S. Geological Survey 97% of America's domestic iron ore supply came from mines in Michigan and Minnesota.

Nearly all that production came from eight mines owned by three companies.

The U.S. produces 53 million tons of iron ore per year.


I think they have it wrong, ($45.0mt) China still announcing infrastructure projects. If USA embarks on major projects they will need to import IO. Likely sources Brazil or Canada.

Shortfall for China would be met by Australia, if supply kept in check $70.0mt is here to stay in LT.

In fact most major countries including Australia (NSW in particular) are also announcing significant new projects all requiring huge amounts of steel therefore coal and IO

Analysts have so far been off the mark. RBC has it at $59.0 & Macquarie st $50.0mt average for 2017. GS reckons we will be paying the Chinese to take it off our hands??

Here's another comment, which contradicts what they have been telling us for months


“This market is a lot tighter than what consensus” had expected, said RBC Capital Markets analyst Tyler Broda. Global iron ore supply and demand has swung to a 40 million ton deficit this year compared with a 100 million tons surplus last year, according to Macquarie."

From surplus to deficit, from$40.0mt to over $55.0mt forecasts,why these guys bother, they are feeding their clients with bs info, and changing sentiment from week too week.

Rcman and some other HC posters do a much better job researching and do not get paid for it