Headline Iron Ore Prices Buoyed by Elevated Freight Rates
Dow Jones
Sep 08
0101 GMT - Investor feedback suggests iron-ore prices have been resilient, says Morgan Stanley. But it doesn't necessarily agree. "Headline CFR [cost and freight] iron-ore prices are being supported by higher freight, giving an impression of higher netback prices for the iron ore miners, which are in fact significantly lower" on-year, MS says. Fortescue and Mineral Resources are most impacted when factoring in current iron-ore prices and freight rates, it says. MS isn't upbeat on the outlook for iron-ore prices, either. "We expect iron ore to weaken into 2H, and see little reason for the market to be excited about iron ore at present," it says. MS forecasts benchmark iron ore at $92/metric ton in 4Q. The spot price is $100.05/ton, according to S&P Global Energy.
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