In a report, the US banking group Citigroup warned of the strong possibility of fluctuations in iron ore prices in the global market, given that these commodities are currently being traded at a much higher price than the cost margin.
The group stated that even with a slight fluctuation in the global market equilibrium, the price of crude could rise to between $ 100 and $ 200 per ton.
Citigroup indicated that the strongest factor affecting the iron ore market movements is the restrictions imposed by China on steel production, which could negatively affect iron ore prices by the end of 2021.
Citigroup expects an increase in demand for iron ore in global markets by 2%, or the equivalent of 30 million tons annually, during the current year, after it had already increased last year.
And Bloomberg News indicated that the price of iron ore is expected to rise in the short term to 170 dollars per ton in the coming months, before retreating to between 140 and 110 dollars per ton during the current and next two years.
According to Citigroup’s expectations, the price of a ton of iron ore will be in the range of $ 160 per ton during the first quarter, then $ 145 per ton during the second quarter, $ 135 per ton during the third quarter, and $ 120 per ton during the last quarter of this year, provided that the average price for the year as a whole is within the limits. 140 dollars a ton, while previous estimates indicated that it would be in the range of 115 dollars a ton.
