Perspectivas del Iron Ore
Iron ore has more than doubled since December 2015 as stimulus in China helped to sustain steel output in the world’s top producer, with data on Friday showing mills raised supply 1.2 percent last year. The rally has endured even as overseas suppliers in Australia and Brazil continued to boost low-cost mine output, increasing their share of sales into China while local miners pulled back. ANZ said foreign suppliers would probably be able to hold their own and, as yet there aren’t signs of a bounce back at mainland mines.
While a return of Chinese supply would weaken the market and may push prices below $60, “we believe the probability of this occurring is relatively low,” ANZ said. “Exporters have established strong relationships with buyers in China and now provide nearly 90 percent of China’s total iron ore consumption.”
“Optimism in China’s steel industry remains the key driver of iron ore prices in the short term,” said Hynes, adding that on a fundamental basis there’s little reason for prices to fall significantly. “However, China’s domestic iron ore industry could also have a big say in iron ore prices remaining near current levels in 2017.”
https://www.bloomberg.com/news/articles ... n-the-fray