Iron Ore: Bullish momentum intact – OCBC

Steel prices in China continue rising as parity prices for iron ore are now estimated at $85/mt-$95/mt, per OCBC Bank.

Key quotes

“Iron ore inventories in China are now lower than last July’s low, when prices easily traded over $100/mt.” 

“Steel inventories continue declining and we estimate it is expected to enter its 10-year range in the next 2- 3 weeks.” 

“The market has firm fundamentals supporting its ascent and if the supply tightness continues, we might see iron ore making a run for $100/mt again.”