UBS on the iron ore price rebound - says underlying demand is still not that strong

Author: Eamonn Sheridan | Category: News

AUD looks to the price of iron ore as a critical input. 

How much longer does the (respite?) rally in iron ore last is addressed by a local press piece published Tuesday, Australian Financial Review: Iron ore's incredible rebound could be short-lived (may be gated)  
From the piece:
UBS - 
  • "It's being driven partly by restocking from the National Day holidays and so the question mark is how long that continues for"
  • "Underlying demand is still not that strong, and we don't have conviction yet as to how long the current rally can endure."
Morgan Stanley - 
  • forecasting will average $US85 a tonne during the final quarter of 2021
  • We believe iron ore can dip further into the fourth quarter of 2021 and first quarter of 2022, but expect a bounce by the second quarter, as China’s steel production curbs are lifted and infrastructure stimulus filters through
There is more at that link to the AFR above. 

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