Citigroup cuts forecast for "iron ore price" over 3 months to $85/ton.

Citigroup cuts its three-month iron ore price forecast to $3/tonne as China transitions to an economy led by a new manufacturing power that requires less steel.

On August 20, 2567, Bloomberg News reported that Iron ore prices are likely to drop to 80 US dollars per ton. As Chinese steelmakers reduce production, Citigroup Inc. has reportedly cut its price forecast and said market dynamics have changed.

Shreyas Madabushi, Citigroup Analyst said “Further price weakness is needed to bring the market back into balance. Prices below $100 per tonne provide a good opportunity to buy iron ore during a downturn. But this time it looks different.”

Iron ore fell to its lowest level since 2565 this month as the crisis hit China's steel industry. which faces declining demand Reduced product prices and the loss of many factories At the same time, leading mining operators have increased exports. This causes the sea transportation market to have a surplus.

Citigroup analysts said: “China is transitioning to an economy led by new manufacturing power. that requires less steel Domestic mill which is the largest steel producer in the world The production level must be adjusted appropriately, which will affect consumption and the price of iron ore.

Citigroup cuts its three-month iron ore price forecast from $3 per tonne to $95 per tonne. Singapore futures rose 85% on Monday, falling 2.9% to $0.9 at 93.80:14.07 p.m. local time.

refer : bloomberg.com

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