Iron-ore strayed well off-script in 2016 as a rally surprised the bears. Michael Zhu, former global sales director at Vale SA, says the commodity will probably face a tough year in 2017 as supply keeps on expanding while China’s steelmakers struggle to sustain output at current levels. “I’m not optimistic that the iron-ore price will keep going up,” Zhu, president of Hong Kong-based trader Millennia Resources Ltd., said in an interview, predicting that prices will probably trade between $50 and $60 for the rest of 2016. Next year will be challenging “because Chinese steel production, even if they try to keep at current levels, iron-ore supply will be increasing,” he said.
