Goldman Sachs upgrades iron-ore price forecasts for 2017

In a latest research note, analysts at Goldman Sachs revised higher their price-outlook for iron-ore in the year ahead.

Key Quotes:

“We envision a three-step price path in 2017.”

“In the first step, we expect a near-term correction, which is already underway since iron ore prices reached almost US$80/t post-election, to continue until prices reach US$65/t.”

“During 2017H1, we see supply and demand roughly in balance and expect prices to stay above US$60/t.“

“During 2017H2, however, we expect the supply pressure to begin to build and iron ore prices to fall to US$55/t by year-end.”

“We revise up our long-term equilibrium price to US$45/t (previously US$35/t).”