Iron-ore may take longer to bottom out as China steps up efforts to support the economy and as miners’ costs may climb, according to Citigroup, which raised its forecasts by as much as 21%.
The raw material is expected to trade at $48/t in the third quarter and $46 in the final three months, compared with previous estimates of $46/t and $38/t, Citigroup said in a report Tuesday. Prices will average $49/t this year and $42/t the year after, before sinking to $38/t through 2019, it said.
