| Steel prices--and thus steel companies and ETFs--are driven in part by the price of iron. Analysts are expecting the price to fall near term, but see reasons for a late year rally. Iron To Fall, Then Rally? The price of iron ore is hanging around the $82/ton level and some analysts are looking for a short-term drop of another 15 percent before the bottom is formed.
Morgan Stanley came out with a call this week that said it feels iron ore could hit $70/ton before a year-end rally in the price of the commodity. The research firm predicts it could rally to $90/ton by the end of the year. Vale SA VALE, +0.24% a large global metals company, stated last week it feels iron ore prices could reach $100/ton by the end of December. Related Link: 2 New Income ETFs Launched Catalysts The two catalysts that will be moving iron ore are Chinese demand and the supply at the ports.............................................Full Article: Source
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