Goldman Sees Iron Ore Sinking Back to $50
- Bank expects increased mine output, including from Vale’s S11D
- ‘We see steel production in China peaking,’ analyst Shan says
Photographer: Dado Galdieri/Bloomberg
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Iron ore will weaken next year as global supplies increase including from a new mine in Brazil at the same time that steel production risks topping out in China, according to Goldman Sachs Group Inc., which expects prices to decline back toward $50 a metric ton.
The raw material may fall to $60 a ton in three months, $55 in six and $50 in 12, according to the New York-based bank’s projections, which suggest a second year of lower prices after they dropped in 2017. Benchmark ore with 62 percent content was at $67.92 a dry ton Wednesday, according to Metal Bulletin Ltd.