Goldman Sachs Combines Higher Iron Forecasts With a Warning
- Quarterly views raised by 14% to 47% for remainder of year
- The rally could `have negative consequences,' Goldman says
Rio Tinto Reaffirms Goal for Iron Ore Output
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Goldman Sachs Group Inc. raised its iron ore forecasts for the remainder of the year after a surprise rally at the start of 2016, while warning that the price revival may store up problems as supplies are still set to climb.
The outlook for this quarter was increased 47 percent to $55 a metric ton, the July-to-September view was boosted 20 percent to $45 and the call for the final three months rose 14 percent to $40, the bank said in a report received on Friday. The changes, which lifted the full-year estimate 19 percent, come about two weeks after the New York-based bank had forecast a retreat to $35 by year-end on expectations for a return to oversupply.