April was an astonishing month for iron ore with prices surging towards $70/t CFR as speculative money poured into an overheated market. Beijing's latest attempt to stimulate growth through "old style" credit fuelled fixed investment has driven up steel production and generated strong demand for iron ore. The supply side has also played a part with all three iron ore majors cutting production guidance. Sentiment has turned positive and there's a growing realisation that seaborne iron ore could be more closely balanced this year than previously thought. But iron ore's latest rally is built on fragile foundations and by our reckoning this is still an ex-growth market with rising supply and falling costs. Our Q2-16 average price forecast is $56/t CFR, falling to $48/t CFR in H2-16 and lower still in 2017.
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This Iron Ore Short Term Outlook report provides a detailed breakdown of global supply and demand balances in this market, as well as price forecasts.
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Commodity market report | Apr 2016
Global iron ore short-term outlook April 2016
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