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Low Iron Ore Prices Could Soon Cause Closures, Analysts Say
Sep. 12, 2014 12:37PM PST
Base Metals Investing Reuters reported that iron is set to fall for the fifth week in a row as the surplus continues and China’s steel market looks weak. However, Matt Fusarelli, an analyst at AME Group in Sydney saw prices rebounding to “perhaps $95 a tonne towards the end of the year,” forecasting production closures and a tightening of supply.
Reuters reported that iron is set to fall for the fifth week in a row as the surplus continues and China’s steel market looks weak. However, Matt Fusarelli, an analyst at AME Group in Sydney saw prices rebounding to “perhaps $95 a tonne towards the end of the year,” forecasting production closures and a tightening of supply.
The analyst commented:
I would argue that the market has overshot on the downside and we’re seeing a rebalancing. Even though the market is in a structural oversupply, we still believe that there’s going to be some improvement in prices in the fourth quarter.