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Analysts with Morgan Stanley say the worst being currently seen in iron prices are probably over as the Australian-led supply gut eases.
Analysts with Morgan Stanley say the worst being currently seen in iron prices are probably over as the Australian-led supply gut eases.
According to Bloomberg:
The steel-making ingredient entered a bear market in March as BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO) expanded low-cost supplies, betting that increased volumes would offset lower prices while forcing less-competitive mines to close. Concern that China is slowing, with the biggest buyer set for the weakest expansion in almost a quarter century, exacerbated the rout. The raw material may drop to less than $60 next year, according to Citigroup Inc. and Roubini Global Economics LLC.
Tom price, an analyst at Morgan Stanley, told Bloomberg:
In terms of price downside, the worst is probably over. The major factor that undercut ore prices in 2014 was the Australian-led supply surge.