Westpac has warned that iron ore prices could collapse 30 per cent this year to about $US70 a tonne when Rio Tinto floods the market with fresh supply, deflating hopes of a sustained rebound for Australia’s key export.
The spot price of iron ore rallied nearly 7 per cent last week to $US104.15 a tonne after robust Chinese trade data bolstered hopes that Beijing’s stimulus measures were lifting steel demand.
