BHP flags ‘another 10 years’ as iron-ore adjusts after boom

June 21, 2016

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The iron-ore market will take longer to balance out than other commodities as excess supply may take years to be absorbed after a boom, according to BHP Billiton CEO Andrew Mackenzie, who flagged his company’s low production costs as a lure for hedge-fund investors.

“There are some commodities, like oil and copper, where there is a natural decline because pressure drops off, grade drops off,” Mackenzie said in New York after making an address. “One of the markets that will take longest to come back into balance is the iron-ore market.”

Category: General