SYDNEY, Jan. 18 (Xinhua) -- Global financial ratings agency Standard & Poors has increased it price forecast on a number of key Australian export commodities on Wednesday.
According to S&P, Iron ore prices are set to surge, with the agency now predicting prices to reach an average of 55 U.S. dollars per tonne in 2017, well above their previous mark of 45 U.S. dollars.
The increase is due to positive impact of economic enhancement measures in China, and an increasing demand for steel in the first six months of 2017, S&P said.
The price of iron ore had dramatically fallen to ten year lows at the beginning of 2016, but have made up ground over the last few months to hit marks of 80 U.S. dollars per tonne.
S&P also expects some movement in the price of gold, speculating the price will round out to 1,250 U.S. dollars an ounce, up from their last estimate of 1,200 U.S. dollars per ounce.
Copper prices are also set to be on the rise according to the ratings agency, with an average price of 5,070 U.S. dollars per tonne expected for the 2017 calendar year.
The improved price estimates could potentially ease the strain on some Australian mining companies, according to S&P, but the agency does not expect any other significant changes to be made to their current ratings.
S&P says their ratings of miners will be under review, with financial results set to be released in February.
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