As Goldman Backs Off, Citi Says Chase Iron Ore Rally to $100
- Futures in Singapore poised for the highest close since 2014
- Market hit by Vale supply loss, Australian cyclone disruption
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Iron ore’s poised to hit $100 a ton, according to Citigroup Inc., which highlighted “very, very low” seaborne cargoes just as data from China may show a pick-up in demand. That view follows advice from Goldman Sachs Group Inc. that investors should be closing bullish bets after recent gains.
“Iron ore is not a demand story, it’s a supply story,” Citigroup Inc. Global Head of Commodities Research Ed Morse said in a Bloomberg Television interview on Monday, reiterating the bank’s three-figure forecast. In a separate note on Sunday, the bank said investors “should ‘chase’ this year’s rally, not sell into it,” referring to iron ore, as well as copper.