According to The Australian Financial Review, Australia's biggest export earners, iron ore and coking coal, should be fetching stronger than expected prices in coming years according to Credit Suisse.
The bank expects iron-ore prices to increase from current levels of about $US95 ($137) per tonne to $US110 per tonne in the period between July and September, as the peak buying season for Chinese steel mills coincides with supply weakness from Brazil after January's tailings dam disaster.
Credit Suisse expects iron ore to average $US85 per tonne in 2020; well above the $US55 per tonne (excluding the cost of freight, which is typically about $US6) that the Australian government has forecast for March 2020.
Credit Suisse has forecast iron ore to average $US75 per tonne and $US65 per tonne in 2021 and 2022.
The bank has upgraded its hard coking coal price forecast for 2019 by 27 per cent to $US203 per tonne; the price was $US212 per tonne earlier last week.
Credit Suisse expects the price to remain above $US200 per tonne in 2020 and 2021, before easing to an average $US180 per tonne in 2022.
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