Iron-ore seen lower at $100/ ton in Q4 – Morgan Stanley
Analysts at Morgan Stanley offered a bearish outlook on iron-ore prices over the next 12 months, in its latest client note.
Key quotes
“Shipments from Vale increasing and demand from China (steel output) easing.”
“China demand eases during the country’s winter with slowing construction.”
“Some support from China port inventory replenishment.”
“Seen Iron-ore prices at 100$/ton in Q4 and dropping to $81 in 2021.”
FX implications
The bearish iron-ore price forecasts s something to watch out for the aussie traders, implying likely weakness in the Australian dollar going forward.
The ferrous metal is Australia’s top export product.
AUD/USD was last seen trading at two-month lows of 0.7056, down 0.19% on the day.