Industry News

Iron-Ore Prices May Have Peaked. Sell Rio Tinto Stock, UBS Says.

Views : 146
Update time : 2021-06-21 21:45:55

It wasn’t too long ago that the big talk in commodity markets was whether there was a supercycle.

Analysts at UBS now have flagged the opposite, downgrading mining giant Rio Tinto to sell from neutral, as they said iron ore is approaching an infection point.

Iron-ore prices have surged from $80 a metric ton in 2019 to $220, but analysts led by Myles Allsop said prices could fall 50%. The supply disruption in Brazil, first caused by the Brumadinho dam disaster and then exacerbated by the Covid-19 pandemic, is being unwound, they said. China is looking to deflate commodity prices, including steel, by selling domestic reserves and by pressing commodity players not to drive up prices. Furthermore, the analysts said, iron-ore inventories in China are climbing.

Longer term, the analysts said latent capacity from the majors including Vale, Rio Tinto, FMG and BHP will further boost supplies. China also is proposing using more steep scrap, and the development of a trans-Guinean rail line is set to make Guinea a major exporter of iron ore by the end of the decade.

Related News
Read More >>
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
Mar .12.2025
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging
Mar .12.2025
Uzbekistan’s aluminium cans manufacturing unit to reduce dependency on imported aluminium packaging
Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they? Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they?
Mar .12.2025
Two contrast sequences set to boost China’s aluminium smelters’ profitability, offsetting tariff losses. What are they?
International crude oil prices increase on Mar 11 International crude oil prices increase on Mar 11
Mar .12.2025
International crude oil prices increase on Mar 11