Goldman Sees Iron Back Below $50 as Balance of Power Shifts
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Iron ore is headed back below $50 a metric ton as low-cost supplies from Australia and Brazil expand and a slump in steel squeezes mills’ profits, according to Goldman Sachs Group Inc. The price dropped to a one-month low.
Freight data from terminals in the two biggest shippers showed volumes rose 10 percent in the first half of June compared with the average over the first five months, the bank said in a report dated June 21. The rise will be sustained, allowing inventories in China to recover and sending prices lower again, Goldman said, predicting ore will average $49 a ton in the third quarter and $48 in the final three months.