Date: Dec. 17, 2015
By: Sue Lannin
A prominent China economist has predicted more mining companies could go
bankrupt globally in the new year, including major second tier firms, as China’s economy slows down and commodity prices keep falling.
China based economist Andy Xie used to run Morgan Stanley’s economics team in Asia.
He has forecast that iron ore prices will trade between $US30-40 a tonne in 2016, and that means more iron ore miners could go under including in China.
“So what I see is that next year Chinese demand is likely to go down a lot more, like 20 million tonnes,” Mr Xie told the ABC in an interview.
“And exports will rise less, maybe like 2 million tonnes so the whole production will shrink by at least, I believe, 10 million tonnes. [FULL STORY]