In light of tonight’s wonderful melt up in iron ore, Goldman Sach is screaming ‘supreme horseshit’ on the current bedazzling of steel stocks. They just don’t see it happening, unless of course something material changes in China.
“We are yet to find evidence of higher-than-expected steel demand – whether in the order books of individual steel producers or in the official data for new orders. Based on the information currently available, the seasonal increase in demand appears only marginally stronger than last year,” Goldman Sachs said.
“Barring a material increase in Chinese steel demand in the coming weeks, we believe steel production will decline in 2016 and seaborne demand has essentially peaked. The stream of announced production cuts is bound to resume, in line with long dated iron ore prices that have remained in the low to mid $30s for 2017 and beyond,” Goldman Sachs said.
China will not recover any time soon. Fade the rally.
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Fly didn’t you see my comments on the blog before. Not sure why Goldman didn’t do the same analysis with the late April closings?
I must admit I did not see the marriage of Rupert Murdoch and Jerry Hall coming.
don’t let facts ruin a bear hunt
Fade GS. Stopped out of 6/7 Top Picks for 2016.
Either GS is supremely short iron ore/steel stocks or they want to get in lower … I wouldn’t trust GS with your money