Goldman eyes lower iron ore and copper prices, miners fall

|By:, SA News Editor

Mining stocks are having a rough ride today as the pace of growth slows in China's GDP and industrial production, and Goldman Sachs comes out bearish on copper and iron ore prices.

Proclaiming "the sunset of the Iron Age starts in 2014," Goldman believes the steel intensity of the Chinese economy will be on a downward trend from 2014 onwards following a decade where steel production growth outpaced GDP growth.

Some indicators already point to lower rates of steel production growth, the firm says; Chinese steel-making capacity is near its peak, and a greater focus on environmental regulations is driving the closure of an increasing number of blast furnaces.

Goldman expects Iron ore to fall to $108/ton in 2014 and $80/ton in 2015.

CLF -6.1%, RIO -3.2%, VALE -4%, FCX -1.9%, BHP -1.6%.