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VIEW: ANZ note that "iron ore's recent.......>

METALS
METALS: VIEW: ANZ note that "iron ore's recent rally looks increasingly
stretched, with strengthening headwinds in the steel industry likely to put
downward pressure on prices in the coming months. China's relatively resilient
steel production, amid the economic turmoil, has supported iron ore prices.
Traders have high expectations of infrastructure-led stimulus measures boosting
demand. However, in recent days, prices have been supercharged, as concerns
mount over supply from Brazil. The state of Para, which produces nearly 30% of
the country's iron ore, has registered an alarming spike in COVID-19 cases. This
could put up to 80mt of supply at risk. Nevertheless, we see downside risks
developing in the market. Global steel demand is expected to fall sharply in
2020. Once it gets past pandemic-related supply disruptions, the market will
face rising exports from Brazil and Australia. This is not an environment in
which one would expect iron ore prices to rally."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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