Because....UBS Sees Iron Ore Plunging 54% to Lowest Since ’09 on Supply
By Phoebe Sedgman - Feb 26, 2013 6:05 AM ET ..Facebook Share LinkedIn Google +1 0 Comments
Print QUEUEQ..Iron ore, trading near 16-month highs, may slump 54 percent to the lowest level since 2009 as China boosts production and global supply climbs, said UBS AG. (UBSN)
Rates may tumble to $70 a ton in the three months ending September after trading between $130 and $160 through June, Sydney-based commodity analyst Tom Price said in a phone interview today. China is the world’s biggest importer.
Iron ore has surged 75 percent from a near three-year low in September as China’s growth rebounded from a seven-quarter slowdown. That may prompt an increase in Chinese output and idled mines with capacity of 100 million tons a year are set to return to the market from March, according to Macquarie Group Ltd. on Feb. 22. Global seaborne supplies will climb 9.1 percent this year, Morgan Stanley estimates.
UBS is not Carnac and their numbers of iron ore price are simply BOGu S and meaningless. Price is not going down likethat . Comparing today's economy with 2009's is absurd. There is no such comparision. Price will be around $110 to $150 thruout 2013