Iron-ore: Eyes $200/ ton amid steel boom – Wood Mackenzie
Wood Mackenzie, global energy, chemicals, renewables, metals and mining research and consultancy group, remains optimistic on iron-ore prices, despite the 14% climb last month.
Expectations of surging steel consumption, in the wake of a post-pandemic global economic recovery, are likely to push the price of the ferrous metal higher.
Key quotes
“Iron ore prices could go higher in the short-term and exceeding $200 a ton is definitely possible.”
“It would only take extra supply concerns, or additional strength in Chinese steel production, for prices to get there.”
“If China wants to slow steel production, it needs to temper domestic demand, which is highly leveraged toward construction.”
“We expect to see additional measures from the government aimed at cooling steel demand, especially in the property sector, and that will likely be the catalyst for a correction in iron ore prices.”
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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
