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Bloomberg reported that Citigroup Inc. has predicted that weak steel demand in China will lead to iron ore prices dropping below $50 a metric ton.
Bloomberg reported that Citigroup Inc. has predicted that weak steel demand in China will lead to iron ore prices dropping below $50 a metric ton.
As quoted in the market news,
Chinese steel demand shrank in January and February from a year earlier, the bank said in an e-mailed report on Monday that repeated its forecast for a breach of the $50 level, from $54.66 on Friday. Weaker currencies, lower energy prices and reduced freight rates will cut miners’ costs further, Citigroup said.
Citigroup stated,
We remain bearish iron ore and reiterate our expectation that prices will fall below $50. Real steel demand — based on production, net exports, and changes in mill and trader inventories — suggest significantly negative year-on-year growth for January-February.