Wednesday, 23 Nov 2011
Market Watch reported that JPMorgan Chase & Co has trimmed its forecasts for iron ore prices by 10% to 15% for the next five years in response to lower expected demand for the steelmaking commodity.
JP Morgan has cut its average price forecast as under
2011- - By 6% to USD 167.40 a tonne
2012 - By 16% to USD147.50 per tonne
2013 - By 14% to USD 150 per tonne
2014 - By 11% to USD 125 per tonne
2015 - By 13% to USD 105 per tonne
The company said in a research report published Tuesday that “We believe that high cost Chinese production will keep its place in the market and support prices at above normal levels for some time. However, we have lowered our demand projections in line with our global economists' estimates of world growth and this results in lower price forecasts.”
JPMorgan said “The supply side remains supportive and supply disruptions and continued delays in projects by the junior miners make us confident that the iron ore prices are here to stay relatively high for a few years.”
JPMorgan said “Spot prices for the commodity have swung wildly in recent weeks, declining more than 30% over three weeks and then recovering about 26% from the bottom of USD 116.90 per tonne. Going forward, the recovery and the sustainability of iron ore prices will depend on the strength of recovery in demand from Chinese steel mills, a potential recovery in European steel demand and an overall improvement in the general macro-economic sentiment.”
(sourced from marketwatch.com)
Market Watch reported that JPMorgan Chase & Co has trimmed its forecasts for iron ore prices by 10% to 15% for the next five years in response to lower expected demand for the steelmaking commodity.
JP Morgan has cut its average price forecast as under
2011- - By 6% to USD 167.40 a tonne
2012 - By 16% to USD147.50 per tonne
2013 - By 14% to USD 150 per tonne
2014 - By 11% to USD 125 per tonne
2015 - By 13% to USD 105 per tonne
The company said in a research report published Tuesday that “We believe that high cost Chinese production will keep its place in the market and support prices at above normal levels for some time. However, we have lowered our demand projections in line with our global economists' estimates of world growth and this results in lower price forecasts.”
JPMorgan said “The supply side remains supportive and supply disruptions and continued delays in projects by the junior miners make us confident that the iron ore prices are here to stay relatively high for a few years.”
JPMorgan said “Spot prices for the commodity have swung wildly in recent weeks, declining more than 30% over three weeks and then recovering about 26% from the bottom of USD 116.90 per tonne. Going forward, the recovery and the sustainability of iron ore prices will depend on the strength of recovery in demand from Chinese steel mills, a potential recovery in European steel demand and an overall improvement in the general macro-economic sentiment.”
(sourced from marketwatch.com)
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