Australian Govt: Iron-ore prices to remain high for the next two years, AUD bullish

In its latest assessment of commodity exports and prices, the Australian government offered an upbeat outlook on iron-ore prices.

Key takeaways

“Also expects Australia to become the world's largest gold producer. Exports of commodities expected to be upwards of 250bn AUD in the year ahead.”

'Significant growth in Brazilian short-term supply remains unlikely due to the wider problems of COVID-19 across the Brazilian economy. The main risk to prices is thus on the demand side.”

“Iron ore would hold around $US100 a tonne "over coming months" and would gradually decline to be closer to $US85 a tonne by June 2021.”