Goldman upsells commodity losses

Tuesday, 17 August 2021

In mid-July Goldman raised its H2 forecast for average iron ore prices to $195/mt from $117/mt, saying it does not foresee a clear, sustained surplus in iron ore markets until 2023, and prices face a more gradual downward path than anticipated. Since then, iron ore has crashed 30% with no end in sight.

Nearly all commodities are down materially over the same timeframe.

But Goldman is having none of it:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.