Goldman Sachs Hiked Iron Ore Price Forecasts

Goldman Sachs Hiked Iron Ore Price Forecasts

In its latest report published on Friday, Goldman Sachs upwardly revised their iron-ore price outlook for 2016.

Key Points:

For Q2 2016, iron-ore price forecast raised by 47% to $55 / metric ton

Q3 2016 forecast up 20% to $45

Q4 2016 +14% to to $40

Full year estimate is 19% higher to $47 a ton

2017 & 2018 forecasts have been left unchanged at $35

Despite, the raise in the price forecasts, the US investment bank noted,

Strong growth in steel consumption is ... unlikely

More low-cost production is on the way

Increased spending by China "can't suppress bearish iron ore fundamentals indefinitely"