| Iron ore prices may tumble about 30 per cent over the next 18 months as supply expands while steel output falters, according to Goldman Sachs Group, which said the impact on the market from China's devaluation was a sideshow. "Supply is likely to diverge further from demand," analysts Christian Lelong and Amber Cai wrote in a report. "Contrary to market consensus, we believe that peak-steel production will be followed by a contraction" in China, they wrote, sticking with price forecasts for the next four quarters.
Iron ore rebounded in the past five weeks from the lowest level since at least 2009 as steel prices advanced in China and shipments from the top exporters, Australia and Brazil, lagged behind expectations. China's government devalued the yuan last week, roiling commodities markets and spurring concern that import demand for dollar-denominated raw materials may drop...............................................Full Article: Source
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