Why iron ore could fall further

Record production volumes will do nothing to help tumbling prices in 2016.

Summary: Analysts see further falls in iron ore prices as a significant possibility - perhaps into the $20s a tonne range, if market conditions fail to improve. ANZ predicts prices in the range of $35 to $40 this quarter, while Citigroup sees it hovering around $35 for two years from later in 2016, as the global glut continues.

Key take out: The continuing high levels of production, despite China’s decreasing appetite for iron ore, could mean prices stay below $50 for some time.

Key beneficiaries: General investors. Category: Shares.

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