Iron Ore Price, page-7131

Don't forget this, from the same article -



Long-term iron ore outlook not so positive

But while bullish on steel, Credit Suisse is yet to formally translate that optimism into substantially revised iron ore forecasts.

Its current estimate for average second-quarter 2016 prices is $US52 a tonne – a few dollars better than the previous forecast, but still far below current spot prices.

Nor is Credit Suisse optimistic in the long-term. "The iron ore oversupply story fades in 2016," Mr Hope said.

"Iron ore for the current year looks balanced to date [but] 2017 looks over-supplied at this point, with 95 million tonnes too much supply prior to Rio Tinto's new guidance."

That is reflected in the longer-term forecasts. By the end of 2016, and from 2017 through to 2019, Credit Suisse is tipping iron ore to be back at $US40 a tonne.

Other forecasters also agree that iron ore will retrace its gains.

Macquarie's iron ore outlook is for the metal to drop to $US52 in the second and third quarters of this year, followed by a further drop to $US48 in the fourth quarter.
After bottoming at $US45 next year, the commodity will rebound to $US60 in 2021, Macquarie said.

As a point of comparison, iron ore was trading at more than $US180 a tonne in 2011.
Citibank also expected prices for steel and iron ore to fall in the second half and tips iron ore to average $US45 a tonne this year, higher than its previous forecast of $US39.
The bank expected an average iron ore price of $US39 during 2017 and $US38 in 2018.

Read more: http://www.smh.com.au/business/markets/credit-suisse-prediction-on-chinas-steel-demand-to-bolster-iron-ore-bulls-20160425-goe4uy.html#ixzz46sLNUv56
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