UBS: Short term pain but Australian iron ore producers likely to weather the storm
UBS: Short term pain but Australian iron ore producers likely to weather the storm. UBS commodities analyst Daniel Morgan told the ABC the current price pain in iron ore is likely to be short lived. Steel production rates at this time every year in China tend to roll over and as that occurs, the need to buy iron ore reduces somewhat and for a short period of time, steel mills don't need to be active in the market. But that can drive an iron ore price decline in the short term. On the iron ore price he says he anticipates the current weakness to be short lived. It'll be days, weeks, not months, and there will be a sharp recovery on the other side. So I think towards the end of the year prices will be back above $100 a tonne, in my view. Full report via the ABC: (VIEW LINK)
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