Goldman Sees Iron Ore Slumping 30% on Supply, Steel Outlook
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Iron ore prices may tumble about 30 percent over the next 18 months as supply expands while steel output falters, according to Goldman Sachs Group Inc., which said the impact on the market from China’s devaluation was a sideshow. Prices retreated.
“Supply is likely to diverge further from demand,” analysts Christian Lelong and Amber Cai wrote in a report. “Contrary to market consensus, we believe that peak-steel production will be followed by a contraction” in China, they wrote, sticking with price forecasts for the next four quarters.