Iron Seen in Low-$40s by Citi as Supply Grows, Demand Peaks
- Price forecasts slashed by as much as 20% over next 12 months
- Robust margins have boosted production at Chinese steel mills
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Iron ore may extend a slump into the low-$40s as supplies swell and demand reaches a short-term peak amid steel mill restarts and ramp-ups in China, according to Citigroup Inc., which cut its forecasts by as much as 20 percent over the next year.
The nadir in prices may occur in six to eight months, analysts including Tracy Liao wrote in a report received Monday. Iron ore is seen at $51 a metric ton in the third quarter compared with a previous estimate of $64, and at $48 in the final three months of the year, down from $60.