Rio Tinto Limited
(ASX:RIO) has forecast an iron ore price fall of approximately 33 per cent over the next 18 months.
The global miner’s chief economist Vivek Tulpule cautioned investors the iron ore price will decline steadily to just over $US100 a tonne by September next year.
In its economic and commodity price outlook, Rio re-iterated new chief Sam Walsh’s January comments that the recent iron ore spike was temporary, with short term factors being the drivers behind it.
The company is committed to keeping production costs under $US50 a tonne.
Meanwhile, Rio says copper demand will remain strong, expecting global demand to reach 30 million tonnes by 2025 owing to the continued urbanisation of China.
Rio Tinto reported a $2.9 billion loss in its 2012 financial year.
