Goldman Sachs Significantly Raises 2023-2024 Iron Ore Price Forecast And Sees Undersupplied Market This Year

According to a view recently released by Goldman Sachs Group, the iron ore market is expected to experience shortages for the rest of this year, mainly due to low inventories and declining production. Goldman Sachs wrote in a recent report that "the iron ore market will not be oversupplied this year, but will be significantly undersupplied." Goldman Sachs analysts pointed out that other factors leading to the iron ore supply gap include falling supplies from major iron ore producers such as Australia and Brazil. Goldman Sachs estimates that global iron ore supply has been cut from 1.557 billion mt to 1.536 billion mt in 2023. "This downward revision reflects poor third-quarter supply performance from Australia and Brazil," the report said. Goldman Sachs now expects the full-year average price of benchmark 62%-grade iron ore in 2023 to be $11/mt, up 15.8% from its previous forecast of $101/mt. For 2024, Goldman Sachs analysts expect a 22% rise to $110/mt from a previous forecast of $90/mt.