After an exuberant April which took iron ore towards the heady heights of $70/t CFR, the market fell back with a bump in May with the TSI 62% index dropping by 20% to finish on a three month low of $50/t. Just as the market over reacted on the upside in April, we would not be surprised to see an over reaction on the downside in June with a brief return to the mid/low $40/t range looking increasingly likely. Our H2-16 price forecast is $49/t CFR.
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As global demand weakens and commodity prices fall, we're seeing a challenging environment in the metals and mining industry. Mining companies are increasingly coming under pressure to reduce operating costs, causing many to shift their strategic planning, delay new investments and look to long-term future growth.
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 | May 2016
Global iron ore short-term outlook May 2016
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