The recent rally in iron ore is only temporary, and iron ore’s long-term fundamental weaknesses of oversupply and a lack of demand is not likely to change, Goldman Sachs says.
No major producer has revised its long-term production target downwards, Goldman says, also believing that the deferral of capex at BHP Billiton (BHP +0.8%) reflects further gains in efficiency rather than a change in strategy; also, the firm thinks Atlas Iron (OTCPK:AGODY) is the first - and maybe not the last - Tier 2 producer to reverse a mine closure.
Goldman expects iron ore to average $52/metric ton this year and fall to $44 in 2016 and $40 in 2017.
Iron ore producers are higher after the People’s Bank of China again cut interest rates over the weekend.
Source: Seeking Alpha
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.