Goldman Sachs analysts expect iron ore prices to drop to $ 50 per tonne in 2018 as global supply surges as VALE's strategy to increase production from its giant S11D mine in Brazil, while Chinese demand for raw materials for steel production is decreasing.
Goldman forecasts show that iron ore fell to $ 60 per tonne in three months. At the beginning of 2017, the price was $ 67.76 per ton.
Analysts said that while China's reforms will raise steel prices, iron ore prices will follow their "own supply and demand dynamics."
China consumes more than two-thirds of the maritime iron ore market and produces as much steel as the rest of the world.
But the expert says that steel margins have been high for a long period precisely because of the Asian giant's cutback in production, which has reduced demand for iron ore. In addition, global supply is expected to rise in 2018 as Brazil plans to export 403 million tonnes of iron ore and Australia 872 million tonnes.
Iron ore will return to $ 50 - Goldman Sachs
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Azovpromstal® 29 November 2017 г. 11:39 |
