ANZ sees iron ore holding US$90 to US$95
- Iron ore prices are projected to remain between US$90 and US$95 a tonne for the rest of the year.
- ANZ Group Holdings stock rose to $37.54 following the release of the market report.
- Weak Chinese steel demand and rising global supply are expected to create long-term market oversupply.
ANZ Group Holdings (ASX:ANZ) reported that iron ore prices are expected to hold steady between US$90 and US$95 a tonne for the remainder of the year.
The forecast comes after China's steel production fell in July due to thin profit margins across domestic mills.
“While elevated freight and energy costs have supported recent price resilience, underlying demand signals are fragile, with weak downstream steel consumption and restocking momentum already fading,” said ANZ Senior Commodity Strategist Daniel Hynes.
ANZ stated that rising shipments from major exporters are expected to push the market into oversupply and limit future price gains.
Following the announcement, the ANZ share price was up at $37.54.
Unused iron ore stockpiles continue to mount as Chinese industrial consumption weakens.
Lower export volumes from Australia and Brazil have provided temporary support to market prices.
