The resilience of the iron ore price has been a regular topic of debate through the course of 2013 especially in the wake of price volatility in 2012. The fact that IO prices have remained well above consensus forecast through the course of 2013 has seen FMG rally more than 50% since June lows and is now trading at levels not seen since the start of 2013. Much of the debate centres around the supply/demand equation and a belief that Chinese mills will be faced with a flood of new seaborne supply. The article below from FN Arena takes a closer look at a number of broker forecasts and some of the factors that will influence the IO price in the year ahead. An interesting read if you have a moment (VIEW LINK)
I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.