Iron ore reached its highest level since September 2011 in mid-January, but has since declined 12% on expectations of normalizing supply from Vale, the world’s top producer, and a cooldown in record-setting demand from China.
Credit Suisse in a note quoted by Barron’s lifted its forecast for iron ore during the first half of the year to $170 a tonne, from a lowly $110 before and also adjusted upwards its expectations for the next three years.
Morgan Stanley this week outlined the “plausible scenario” of $165-plus over the next three years according to a Bloomberg report.
That’s in contrast to Australia & New Zealand Banking Group which predicted a fall back to the $100 a tonne level by the end of the year.
