Iron age ending says Goldman Sachs
September 10, 2014 9:16 amVideo
Latest News
- EUR/USD. May 10th. Traders continue to torment the dollar May 10, 2024
- GBP/USD. May 10th. The British economy was pleasantly surprised May 10, 2024
- USD/JPY: Simple trading tips for novice traders on May 10th (US session) May 10, 2024
- GBP/USD: Simple trading tips for novice traders on May 10th (US session) May 10, 2024
- EUR/USD: Simple trading tips for novice traders for May 10th (US session) May 10, 2024
- GBP/USD: trading plan for the US session on May 10th (analysis of morning deals). The pound hit 1.2535 May 10, 2024
- EUR/USD: trading plan for the US session on May 10th (analysis of morning deals). The euro shows no signs of life May 10, 2024
- Trading Signals for BITCOIN (BTC/USD) for May 10-15, 2024: buy above $62,500 (21 SMA – 4/8 Murray) May 10, 2024
- Video market update for May 10, 2024 May 10, 2024
- Technical Analysis – GBPJPY continues to ascend May 10, 2024
- Technical Analysis – EURUSD retests 200-day SMA near downtrend line May 10, 2024
- Bitcoin finds support from a weaker dollar – Crypto News May 10, 2024
- Weekly Forex Outlook: 10/05/2024 – US inflation numbers to shake Fed rate cut bets May 10, 2024
- Forex forecast 05/10/2024: EUR/USD, GBP/USD, USD/JPY and Bitcoin from Sebastian Seliga May 10, 2024
- Week Ahead – US inflation numbers to shake Fed rate cut bets May 10, 2024
- GBP/USD: trading tips for beginners for European session on May 10 May 10, 2024
- EUR/USD: trading tips for beginners for European session on May 10 May 10, 2024
- Market Comment – Dollar slides, gold shines after soft US labor market data May 10, 2024
- Technical Analysis – AUDUSD remains undecided near crucial technical region May 10, 2024
- Technical Analysis – USDCAD slips beneath 20-day SMA May 10, 2024
Goldman Sachs Group Inc has announced that the popularity of iron is nearing its end as prices for the ore declines earlier than expected.
WIth supplies of iron ore continuing to heavily surpass demand, prices for the commodity metal look unlikely to recover which may bring the so called iron age, a period marked by tight supplies and above trend profits, to an end this year. In a report made by analysts Christian Lelong and Amber, they said that the entry of new production capacity has caught up with the growth of demand forcing profit margins to reverse back to their historical mean. Price projections for for seaborne ore in 2016 was reduced from $82 per metric ton to $79 while its forecasts for 2017 received deeper cuts from $85 per metric ton to $78. Goldman Sachs maintained their own forecasts for 2015 at $80.
Iron fell into a bear market earlier this year when the world’s largest producers, including the Rio Tinto Group, increased production of low cost output in an attempt to offset declining prices with larger volumes and drive less competitive mines to close. The downward effects were felt sooner than the November prediction of Goldman Sachs when it would fall in value by 15%.
According to Cai and Lelong, “The price decline has been dramatic, but a weak demand outlook in China and the structural nature of the surplus make a recovery unlikely.”
Prices of ore with 62% content in China’s Qingdao port have declined by 38% this year to $83.50 per dry ton, based on data from the Metal Bulletin Ltd.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: