Westpac predicting Iron Ore to hit $47 this year

Westpac is now tipping iron ore to hit a low of $US47 per tonne this year before recovering to $US69 per tonne, on average, in 2016. "It is very unlikely that 2015 will bring much joy for spot iron ore prices. For the near term Australia and Brazil will continue to expand production, even at current prices, maintaining downwards pressure," Westpac economist Justin Smirk said. "As noted, BHP and Rio Tinto can deliver into the Chinese market for around $US40 per tonne and have an objective to drive costs even lower." (Source: AFR)