Iron Ore Probably Peaked in 2Q, Say UBS’s Gordon

The video discusses the impact of Valley's capacity restart on the iron ore market, leading to a 3% drop. It explores the outlook for iron ore prices, noting production disappointments from major producers like Rio, BHP, and Valley. China's steel production has exceeded expectations, growing at an annualized rate of 3-4%. Despite this, steel inventories in China are rising counter-seasonally. Valley is mobilizing to export more iron ore in the fourth quarter, which may ease market tightness and lead to prices dropping below $100 per ton.

What is the immediate effect of Valley restarting its capacity?

• Stabilization of iron ore prices

• No effect on iron ore prices

• Decrease in iron ore prices

• Increase in iron ore prices

Which major iron ore producers faced production disappointments?

• Rio, BHP, and Vally

• Rio, BHP, and Vale

• Rio, BHP, and Valley

• Rio, BHP, and Valli

How did China's steel production in the current year compare to initial expectations?

• It was lower than expected

• It was as expected

• It was higher than expected

• It did not change

What trend has been observed in China's steel inventories recently?

• They have decreased seasonally

• They have increased counter-seasonally

• They have fluctuated unpredictably

• They have remained stable

What is the expected price range for iron ore in the fourth quarter?

• $120 to $140 per ton

• $100 to $120 per ton

• $80 to $100 per ton

• $60 to $80 per ton