Posted on 10 Mar 2023
ANZ Research has raised its short-term target for iron ore to $130/tonne, but sees prices pushing back below $100/t by the end of the year.
According to the research house, the latest measures announced by the Chinese government to support property lending could provide short-term support for the market.
Higher margins and low inventories should also see steel output pick up in coming months.
“This should support prices in the short term,” the research house says.
However, it says a lack of a sustained improvement in new housing starts will remain a headwind for steel demand this year.
“This will be exacerbated by easing supply side issues,” it adds. Overall, it sees the deficit in the iron ore market easing in 2023.
As pent-up demand slows, it sees the heat coming out of the market.
“This should weigh on sentiment, ultimately pushing prices back below $100/t by the end of the year,” it says.
Source:Kallanish
