Comments from Goldman Sachs commodity analyst Christian Lelong on iron ore:

(spoiler alert ... he ain't bullish):

  • The market outlook remains unchanged
  • In our view, prices must fall below the cash cost of marginal producers in order to force the mine closures required to balance the market
  • In the medium term, we believe inventory levels and export growth normalise and structural drivers will come back to the fore
  • Expects the temporarily high prices to abate