Iron Ore Outlook Cut Back by Morgan Stanley Over Rest of Year
- Bank cuts price forecasts for third, fourth quarters amid glut
- New seaborne supplies seen as Brazil’s Vale SA ramps up S11D
Iron Ore Rally May Be Short Lived
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Iron ore forecasts at Morgan Stanley have been chopped back for the remainder of the year, with the bank flagging prospects for rising low-cost production and the likelihood that the worldwide surplus will increase every year through to 2021.
The commodity will average $50 a ton in the third quarter, 23 percent down from an earlier estimate, and $55 in the final three months, a 15 percent reduction, according to a report. The 2017 forecast was pared 15 percent to $63, while the outlooks for next year and 2019 were left at $58 and $54.