Iron-ore forecasts at Morgan Stanley have been chopped back for the remainder of the year, with the bank flagging prospects for rising low-cost production and the likelihood that the worldwide surplus will increase every year through to 2021. The commodity will average $50 a ton in the third quarter, 23% down from an earlier estimate, and $55 in the final three months, a 15% reduction, according to a report. The 2017 forecast was pared 15% to $63, while the outlooks for next year and 2019 were left at $58 and $54.
