Steen Jakobsen
The Bank of Japan has abandoned quantitative easing and the European Central Bank may taper its bond-buying programme, so what is the role of central banks in 2017, asks Saxo Bank’s chief economist Steen Jakobsen.
Editor’s Picks 21 June 2016 at 5:48 GMT

BHP chief says iron ore supply will take ages to balance out

The global iron ore market will take longer to balance out than other commodities as excess supply takes time to be absorbed after a boom, says the head of the world’s largest mining company, who drew a contrast with the outlook for oil and copper. “There are some commodities, like oil and copper, where there is a natural decline because pressure drops off, grade drops off,” BHP's chief executive Andrew 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.” Iron ore dropped for three years to 2015 as low-cost miners including BHP and rivals Rio Tinto Group and Fortescue Metals Group ramped up output just as growth cooled in China, spurring a glut. Prices staged an unexpected rally in the opening months of this year amid a speculative frenzy in China, before dropping again. Mackenzie said in March he was more bearish on iron ore than other raw materials that BHP produces.
Read full article at Bloomberg


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