by Chris Becker
The Chinese steel industry is still reeling from its call for inquiry into high iron ore prices, with Dalian and Singapore futures moving higher yesterday as spot prices remain elevated.
Forecasts are also being upgraded, happy news for Josh Frydenberg – albeit temporary – with the Jefferies Group revising their own ebullient targets higher:
Jefferies has revised its iron ore price forecasts higher, after S&P raised its price assumptions for this year and the next two for the steelmaking raw material, as it expects a prolonged hit to supply amid mine shutdowns in Brazil.
Jefferies sees iron ore prices at $98 a tonne in 2020, up from a previous forecast of $85; and $85 a tonne in 2021, from $75 previously.