...Changes From Previous Assumptions: The current assumptions report includes an approximate 10% reduction in assumed iron ore prices as well as the publication for the first time of the agency's gold price assumptions. Prices for copper, aluminium and zinc are largely unchanged. Iron Ore Downward Trend: Fitch Ratings expects iron ore spot iron prices on a CFR (Cost and Freight) basis to average USD100 per tonne in 2014 with continued short-term price volatility caused by changes in stock levels and changing expectations for future Chinese steel output and overall growth. Over the next two years Fitch assumes prices will fall to its long-term price assumption of USD90 per tonne as new supply from Australia and Brazil weighs on the market. Copper Supply Side Catch-Up: Fitch expects London Metal Exchange (LME) copper prices to average USD6,800 per tonne in 2014 before falling to USD6,500 per tonne in 2015 and 2016. These levels compare to a market average price of around USD7,300 per tonne in...
