Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 26-Nov-15

The downturn in the iron ore price has prompted some observers to forecast that it will fall below $US40 per tonne. However, Daniel Morgan of UBS says a number of factors may bode well for the steel input’s outlook. They include the expectation that more smaller producers will withdraw from the market and the potential for the tailings dam disaster at the Samarco project to reduce supply in the short-term. On the other hand, the outlook for the Chinese economy and US interest rates may put further downward pressure on iron ore.

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UBS HOLDINGS PTY LTD, SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, METAL BULLETIN PLC, MORGAN STANLEY AND COMPANY INCORPORATED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, UNITED STATES. FEDERAL RESERVE BOARD