The Conversation (0)
With iron ore supplies exceeding demands, Goldman Sachs has said this year will mark the end of the “Iron Age.”
With iron ore supply exceeding demand, Goldman Sachs (NYSE:GS) has said this year will mark the end of the “Iron Age.”
According to Bloomberg:
The 2016 forecast for seaborne ore was cut to $79 a metric ton from $82 and the 2017 outlook was reduced to $78 from $85, according to the New-York based bank, which stuck with a forecast for $80 next year.
Christian Lelong and Amber Cai, analysts with Goldman Sachs, penned a report which states:
[This year] is the inflection point where new production capacity finally catches up with demand growth, and profit margins begin their reversion to the historical mean.