Iron ore prices for May 22, 2019:
Everything ripped the roof off. Goldman says sell, at the FT:
The combination of strong demand and weak supply has pushed prices up almost 40 per cent since January to a five-year high of $103 a tonne, according to a price assessment by S&P Global Platts.
While that price is justified by a tight physical market it cannot last, says Goldman, which sees price gradually easing toward $90 a tonne by the end of the year.
“Going forward, we expect demand to soften while supply to partially recover. The $100 a tonne iron price, while justified for May and June, also reflects a market that is at peak tightness,” Goldman said.
“Although our property team still expects housing starts to decelerate later this year, the Chinese government is likely to keep the deceleration gradual rather than abrupt given the importance of the property sector to the economy and the government’s desire to maintaining growth stability.”
That’s a very rational view. Vale is surely approaching peak fuck up and Brucutu will return.
But until it does…