“In 2017, iron ore prices are expected to recover more slowly than previously forecast,” the department said. Iron ore prices were whipsawed in the first half of 2016 after three years of declines, and remain 26 percent higher after construction activity in China picked up, supporting demand. Iron ore is seen at $44.80 a metric ton next year, Australia’s Department of Industry, Innovation and Science said in a quarterly report on Friday. Australia’s government forecast in a May budget an average price through 2017 of about $55 a ton. Iron ore may average about $35 a ton through the remainder of the year and in 2017, S&P Global Ratings said Thursday as it lowered the outlook on Australia’s AAA credit rating to negative from stable.

Source: The Edge Markets July 08, 2016 02:03 UTC