Goldman Sachs on iron ore prices

3-month forecast raised to $70 a metric ton (from $55)

  • Year-end target up $5, to $60

GS citing

  • higher than expected demand from China - remaining steel mills benefitting from higher prices after government closed some plants, cutting some excess capacity
  • steel and iron ore demand from infrastructure and property new starts in China
  • Growth in global activity (i.e. ex-China)

2018 prices are expected to fall on expanded supply producing a glut

  • expect plentiful iron ore production to come into the market in 2018
  • In most cases low-cost
  • Will put downside pressure prices