In the view of the analysts at Goldman Sachs, iron-ore prices have more room to the upside amid a potential market deficit during the first half of this year.
Key quotes
“We continue to favour upside exposure to iron ore in H 1-21.”
“Our balance points to a material deficit during the period.”
“Supply disruption risks remain elevated in the near term on seasonal weather trends in both Western Australia and Brazil. “
“On the demand side, China’s mill restocking is also a current tightening influence onshore. Onshore COVID restrictions and cold weather present potential near-term headwinds but a strong pipeline of construction activity post-LNY should underpin prices into Q2.”
“We maintain our 6M $150/t target, which based on the forward curve implies dips should be bought.”
Share
