Iron-ore price to drop around 30% in H22017 - HSBC

The Research Team at HSBC published their latest report on Iron-ore, noting that they expect the prices to drop around 30% this year.

Key Points:

The price to drop

Maybe under the cost of production

Looking for this in Q2 this year

Cite Chinese port stockpiles (over 120 million tonnes at the end of February)

Also cite looming marginal supply adding to the market with current high prices (for example, new production from India & Brazil's Vale)

"We do not see economic justification for the iron ore industry to retain excess gains beyond long term margins while the industry remains in surplus"