Goldman Sachs is calling for the iron ore market to enter a structural surplus in 2014 as slower growth in Chinese steel production coincides with increases in seaborne iron ore supply and domestic Chinese iron ore production.
The investment bank now forecasts an average iron ore price of $139 per tonne in 2013, down from an previous estimate of $144 per tonne. Goldman Sachs expects prices to slip to $115 per tonne in 2014 and then to $80 per tonne in 2015.