Iron Ore Price Holds Four-month High While Analyst Price Predictions Remain the Same

The Australian reported that the iron ore price is at a four-month high in offshore trading as stocks at Chinese ports continue to fall, however, despite the boost, analysts see the price holding at current level.

As quoted in the market news:

At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US63.80 a tonne, unchanged from its prior close. After four positive sessions to round off last week, the commodity has solidified recent gains and is currently trading at its highest level since mid-February.

It also remains more than 35 per cent above the 10-year low of $US46.70 a tonne it reached in early April. Driving the recent gains has been reports of falling stockpiles at Chinese ports and some steady data from the world’s largest consumer of iron ore.

Despite the recent recovery, it’s much harder to find a bull than it is a bear, with few analysts tipping the commodity to hold at current levels over the coming 12 months due to oversupply fears.

​“The outlook remains unchanged,” Goldman said in a report, released overnight (AEST). “Chinese steel consumption is contracting and we expect seaborne iron ore demand to peak next year.”

The investment bank retained its view that prices would soon restart their retreat, with the rally “on borrowed time”.

Click here to read the full The Australian report.