Goldman Sachs Predicts 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.

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