In 2015 Citigroup reduced the expectations for coal and iron ore value
Iron ore average value reduced to $58 per one ton in 2015. The expected price for one ton of metallurgical coal reduced to $113 and power-generating coal value lowered to $55 per ton.
According to falling prices for crude oil and reducing courses by manufacturers, Citigroup Inc, an American corporation decided to cut back their forecasts for coal and iron ore. That was necessary to show that after oil market collapse, other raw materials became less expensive.
Analysts reported that back in November the iron ore forecast cost was $65 per ton for the period 2015-2016 and now average price amounts to $58 per ton for the current year and for the next year it is expected to be $62 per ton.
The researchers also informed about lowering the expecting rice for metallurgical and power-generated coal. The forecast price for metallurgical coal has fallen for 7,4% in 2015 and for 9,3% in 2016 and amounts to $113 and $127 respectively. The power-generated coal value reduced in 2015 for 18% and showed the rate of $55 per ton. In2016 this rate is expected to be $64 per one ton down for 15%.
According to the corporation’s report the increased supply from BHP Billiton and Rio Tinto was the main reason of quotations fall in 2014 and led to oversupply in the market with less demand from China. Nevertheless suppliers from Australia and Brazil took advantage of oil prices fall by lowering their transportation costs and took rather strong position in the market however China had more geographical advantages.
