Iron-ore’s rally seen endangered by UBS as supply stacks up

Iron-ore’s revival in 2016 has prompted mine restarts in Brazil, West Africa, Australia and China, adding to global supplies and potentially contributing to a weakening of prices into next year, according to UBS Group AG. “Supply that had left the market is returning,” analysts including Daniel Morgan said in a July 25 report that also flagged increased output from Australian billionaire Gina Rinehart’s new Roy Hill mine in the Pilbara. “Ongoing supply growth and falling demand should weigh on the market further in 2017 at a time of rising energy costs, which will see margins compress.”