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