The Australian Financial Review reported that Fortescue Metals Group Ltd chief executive officer Mr Nev Power has warned of more short term volatility and fluctuations in the price of iron ore, saying the current rally is unlikely to last
According to the newspaper, Mr Power said it was a supply shortage specifically incurred by production shortfalls due to the northern winter that had driven prices higher, while a Chinese announcement regarding the country's growth agenda also translated into a lift in demand.
Mr Power told the AFR “I think the whole talk about the [end of the] commodities boom was really about the end of the price boom that we had seen in the previous 12 months, up to USD 180 or USD185 per tonne, and that was driven by a shortfall in supply. And what’s happened, of course, is that high price brought new supply and easing of demand. That’s what’s moderated price."
