Top Iron-ore forecaster says prices will sink back below $50 - BBG

Justin Smirk, top iron-ore forecaster and senior economist at Westpac, noted in his recent report that he sees iron-ore retreat back below $50 a metric ton next year as supplies go on rising.

Key Points via Bloomberg:

The raw material will drop to average $62 in the third quarter and $59 in the final three months of this year before falling through 2018 to a low of $41

Westpac placed first in predicting prices in the first quarter, according to data compiled by Bloomberg

“As supply builds up and prices come off, people will begin to question the wisdom of holding on to inventories”

“The signs are now pushing in one direction: while we’ll get some volatility, the momentum is just on a downward trend now”