The outlooks for 2016 are rolling in. Here are Citi’s predictions on commodities:
As you can see Citi is forecasting rallies in oil prices and a huge increase in natural gas, which Australia is well positioned to capitalise on as the major LNG export bases such as the Santos operation at Gladstone ramp up operations.
But that’s a whole lot of Australian exports in that bottom five.
Specifically on iron ore, Citi is forecasting a fall to $US40 per tonne next year (on The Steel Index, which was at $US42.80 last night) and then a couple of quarters below the $US40 mark in 2017.
Here are Citi’s detailed price forecasts for iron ore, hard coking coal and thermal coal over the coming two years:
Citi maintains a $US55 long-run iron ore price forecast.