Bloomberg reported that Credit Suisse Group AG raised its price targets for iron ore and other bulk commodities for the next Japanese fiscal year, citing rising global steel output and increasing production costs in China.
Credit Suisse expects the iron ore contract price to increase by 50% to USD 86 per tonne, after earlier forecasting a 20% gain.
Analysts led by Mr Michael Shillaker said in a report that “We expect underlying demand in China to remain robust, although apparent demand growth may slow in coming months, and believe the ex China recovery will be stronger than expected.”