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What’s Next for Iron Ore From the Guy Who Foresaw 2016 Rally

  • Commodity seen higher in 2017, 2018, Prestige’s Schenker says
  • Weaker dollar set to boost prices as macro factors ‘critical’
Operations At Prumo Logistica SA's Acu Port Facility
Photographer: Dado Galdieri/Bloomberg
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Iron ore will probably extend 2016’s rally as China takes further steps to stoke growth and the dollar weakens, according to Prestige Economics LLC’s Jason Schenker, whose rare bullish call in the final quarter of last year is turning out to be right.

While the ride may be choppy, the commodity will trade at about $60 a ton this half and average $55 in 2016, said Schenker, president of Austin, Texas-based Prestige. That compares with $53 so far. Further gains are in store, with $62 seen in 2017 and $72 the year after, he said in a phone interview.