Ratings agency Standard and Poor’s has cut its iron ore price forecasts amid continued weakness in the steel-making commodity.
S&P lowered its assumptions for benchmark iron ore prices by about 10 per cent to $US85 per tonne through to 2016, down from its previous estimate of $US95 per tonne.
“As a result of the revision, we took a number of negative rating actions globally on iron ore mining companies,” Standard & Poor’s credit analyst May Zhong said.
The revised assumption was based on prices for iron ore with 62 per cent content and included costs and freight to China.
The price of iron ore is trading around $US80 per tonne, having fallen 40 per cent this year.