‘Complacent’ iron ore market vulnerable to lithium-style crash

Iron ore prices have run too hard and are now susceptible to a battery mineral-style collapse amid an imminent surge in supply and questions over demand for Australia’s largest export, investment manager Yarra Capital predicts.

If true, that could trigger a $US50 a tonne drop in iron ore prices to $US80 a tonne from their present level of around $US121.20 a tonne, nearly halving the profits generated by BHP and Rio Tinto, and slashing S&P/ASX 200 aggregate earnings by 10 per cent.