Reuters reported that Investment bank Goldman Sachs JBWere sees contract iron ore prices rebounding 10% 2010 and spot prices also firming, as global seaborne trade picks up and Chinese imports rise.
Goldman Sachs said that "After conceding contract price cuts in 2009 ranging from 28% to 48% we believe the balance of pricing power will shift back in favour of the suppliers in 2010 and we have raised our benchmark price forecast for Australian iron ore fines to 10%.
The broker previously expected prices to be unchanged between the 2009/10 and 2010/11 shipping years, which end March 31. It also raised its forecast for spot prices over the next three to 6 months to USD 70 to USD 80 a tonne, delivered in China on the basis that the seller pays for shipping and the buyer for insurance. The forecast is also based on 62% iron content. Spot prices currently stand at around USD 76.50 a tonne.
It said that "We see significant upside risk to this view if non-Chinese steel production recovers sooner and stronger than we currently expect."