Iron ore price, page-34

Morgan Stanley lifts iron ore, exposed stocks

Morgan Stanley has upgraded its commodity price forecasts with bullish implications for some of the miners.


Morgan Stanley weighs in on the volatile commodity.
It has increased its 2017 iron ore price forecast by 29pc to $74 a tonne, while raising its base metal forecasts by 4-8pc.

The broker has upgraded Fortescue Metals to “Equalweight” from “Underweight”, with a new target price of $6.30.

It has also moved Resolute Mining  to “Overweight” from “Equalweight”.

They note potential for further “mark-to-market” upside for most of the key commodities and miners remains if prices retrace slower than expected.

Trump’s promise of massive infrastructure spending and another big credit injection in China saw capital flow back to resources as investors bet on growth.

Base metals and steel materials prices lept 10-35pc post-US election, to a mid-Feb peak and China’s purge of excess capacity buoyed raw materials’ prices by boosting utilisation rates.

Still, Morgan Stanley says the upside momentum is fading because demand is unchanged.