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Iron ore rally to fade on increasingly severe oversupply - Citi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    According to Citi bank’s quarterly commodity report, the recent rally in the iron-ore prices is likely to fade on severe oversupply, Bloomberg reports.

    Key Findings from report:

    The global iron ore market faces increasingly severe oversupply

    Gains in price will probably be reversed in the second half

    Gains in production coupled with likely losses in steel prices will combine to hurt iron ore

    Prices may remain high in the second quarter before the rally fades

    Weaker-than-expected Australian exports and more resilient Chinese steel production have kept prices elevated.

    However, both trends are likely to reverse in the medium and long term.
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