Commonwealth Bank of Australia: iron ore rally is not expected to continue

Update: 14-07-2020

According to the Dow Jones news on July 14, the Commonw […]

According to the Dow Jones news on July 14, the Commonwealth Bank of Australia said that iron ore prices exceeded US$110 per ton on Monday, reflecting strong demand in China, but this rally is unlikely to continue.
The investment bank said that Chinese market participants pointed out that tight port inventories are a key driver of rising prices.
"With the increase in port stocks in recent weeks, in line with the recovery of Brazilian maritime cargo, we believe it is only a matter of time before the tension in the iron ore market eases."
The Commonwealth Bank of Australia expects that with the rebound in Brazil’s iron ore supply, iron ore prices will fall to US$65 per ton by the second half of 2022.
In addition, the investment bank believes that China's current iron ore demand, which accounts for 70% of the maritime market, is unsustainable.