Barclays warns of an imminent sell-off in iron-ore, what’s for the Aussie?
|The Barclays Research Team is out with its iron-ore price forecasts for this year, underscoring concerns that a major fall to $ 50/ ton could be soon on the cards.
Key Points via Bloomberg:
"Forecast an imminent sell-off for iron ore"
Prices will average $50/ton in Q2, before recovering throughout H2.
The bank cites three reasons for the price weakness:
- The winter restriction season on steel production soon to end.
- Port inventories of iron ore are at a record.
- The Chinese economy is set to slow.
Forecasts average price of USD70/ton in Q1, USD50/ ton in Q2, USD58/ ton in Q3 and USD62 in Q4.
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