The new chief of Fortescue Metals Group Limited (ASX:FMG), Neville Power, has forecast iron ore prices could fall as a result of new global supply.
Recently Fortescue’s founder and past CEO, Andrew Forrest, warned iron ore supply is likely to outstrip demand.
Mr Power says the company could endure a price as low as $US70 a tonne. This compares to the current historically high price of around $US176 per tonne for the steel making commodity.
Speaking to the Australian Associated Press, Mr Power said Fortescue is making sure its business is capable of surviving "in those sort of environments".
In the first half of the 2011 financial year, Fortescue Metals Group recorded a net profit of $309 million.
