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Australia lifts iron ore price forecast 10 pct on China demand

Published 07/10/2016, 09:30 am
© Reuters.  Australia lifts iron ore price forecast 10 pct on China demand

SYDNEY, Oct 7 (Reuters) - Australia on Friday raised its 2016 average iron ore forecast to $48.50 a tonne from $44.20 previously, citing stronger demand from China's steelmakers.

In its latest quarterly forecast, the department also lifted its 2016 forecast for the price of metallurgical coal to an average $99.40 from $85.60 a tonne previously.

"Prices for most construction and steel making raw materials continued to grow in the last three months, despite expectations of decline, because of unexpectedly resilient demand from China's construction sector and unforeseen supply disruptions," Mark Cully, chief economist of the Department of Industry, Innovation and Science said in a statement.

The price forecast for thermal coal was unchanged at $62, well below current prices close to $80 a tonne GCLNWCWIDX .

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