Global financial services firm JPMorgan Chase & Co. has reduced its iron ore price forecasts for the next five years by 10-15 percent due to its anticipation of the weakening demand, as reported by Dow Jones Newswires.
In a research report issued on November 22, JPMorgan Chase stated, "We believe that high cost Chinese production will keep its place in the market and support prices at above normal levels for some time." The report goes on to say, "However, we have lowered our demand projections in line with our global economists' estimates of world growth and this results in lower price forecasts."
Accordingly, JPMorgan Chase has reduced its iron ore price expectation by six percent for 2011 to $167.4/mt, by 16 percent for 2012 to $147.5/mt, by 14 percent for 2013 to $150/mt, by 11 percent for 2014 to $125/mt, and by 13 percent for 2015 to $105/mt.