Iron ore has been in a bull market for more than two years, and it's not about to end soon, according to Nicholas Snowdon of Goldman Sachs.
"It's not really going to be until 2023, 2024, that the iron ore market will be kind of back to a more … comfortable position," Snowdon predicted.Demand for iron ore — a raw material that's used to make steel — has been strong and that trend appears on track to continue into next year, Snowdon said.
On the supply side, he said supply growth has not responded to high prices, and producers have been disciplined when it comes to capital expenditure. For now, it looks like a very tight market with a very strong underpin from supply demand, and still robust demand growth rates.echoed the same sentiment
Meanwhile, production from Brazil's Vale is likely to remain constrained as the metals and mining firm continues to manage issues related to the dam disaster two years ago.Goldman's Snowdon said iron ore has a "robust underpin" and a "gradual softening fade" ahead. Prices will soften only when demand growth rates decelerate, he added.
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