Goldman Sachs Lifts Iron Ore Outlook As Prices Climb Again

SEATTLE (Scrap Monster): Goldman Sachs has raised its iron ore price forecast, sparking a second day of gains for futures – even as questions about real demand still hang in the air.

What does this mean?

Iron ore prices are riding a brief rally, with the most-traded contract on the Dalian Commodity Exchange touching 777.5 yuan ($108.70), and Singapore’s benchmark edging to $103.1 a ton. Goldman Sachs bumped its fourth-quarter price target to $95 a ton from $90, lifting investor sentiment for now – but the bank expects prices to cool to $80 by the end of 2026. Still, industry experts are cautious: while futures are flush, demand from steelmakers hasn’t really picked up. Recent steel output dips – thanks to temporary environmental curbs in China’s Tangshan region – are holding back true consumption. But those restrictions are set to end after September 4, which could give demand some fresh legs soon.

Why should I care?

Iron ore’s recent rally has more to do with forecasts and short-term sentiment than with solid growth in steel demand. Unless production picks up soon, these gains could lose steam fast. Some steel products saw modest gains on the Shanghai Futures Exchange, but overall momentum looks shaky, and prices for related commodities like coking coal have slipped. If demand fails to rebound, investors may start pulling back.

 Courtesy:www.finimize.com