PERTH, March 11 (Reuters) - BHP Billiton said forecasts for iron ore prices to fall as low as $80 a tonne appeared low, despite the market moving into oversupply this year.
“Our view is that the long term is robust. We are in a bit of a dip but I don’t think we should draw a line over just the past few days ... $80 feels a little low,” BHP iron ore division head Jimmy Wilson reporters on Tuesday.
Iron ore has averaged $125 a tonne since January 1, 2014, although the spot price is now about $104, the lowest in eight months.
Analysts blame waning demand from China, which buys almost all of BHP’s ore for the retreating price.