Iron ore at China’s ports is to reach more than 90 million tonnes, with China Merchants Future Company (CMFC), Citigroup and Australia and New Zealand Banking Group saying the threshold for the supplies is expected to surpass predictions and highlights the risk for increased pressure for prices to drop, according to Bloomberg Business.
Iron ore prices have declined over the past three years, with supplies from exporters in Australia and Brazil Vale SA has grown while China’s steel productivity and demand has diminished.
Zhao Chaoyue, Analyst at CMFC said: “The increase will be driven by higher shipments from Australia and Brazil, especially in the final months of 2015, against a seasonally weak period for China demand.”
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