The global iron ore market will have a surplus of 4 million tons this year on higher shipments and lower steel demand outside of China, according to Goldman Sachs Group Inc. in a revised projection.
- Previous expectation was a 30 million-ton deficit, analysts including Paul Young said in a report dated Thursday
- Market to move into a surplus in late May or June on higher shipments from Australia, Brazil, and lower ex-China steel demand
- Iron ore prices to decline before rebounding in 4Q on an expected recovery in global steel demand
- Bank sees prices at $70/ton in 2Q, $75 in 3Q and $85 in 4Q
- Market was in a deficit of about 20 million tons in 1Q, explaining strength in iron ore prices
- (Bloomberg)