Outgoing Fortescue Metals Group Limited (ASX:FMG) CEO Andrew Forrest has warned that an over-supply of iron ore could lower prices in the short and medium term
According to The Australian, Mr Forrest says, “Supply is likely to outstrip demand”.
However, while Mr Forrest believes commodity prices may fall in the short to medium term, he still says prices will be strong and lead to a win-win situation for both Australia and Asia.
The paper has called the claims unexpected, considering the company’s ambitious expansion plans.
Fortescue Metals recorded a net profit of $309 million in the first half of the 2011 financial year.
