A Bradesco BBI analyst said an improved market scenario in the second half (H2) of the year should help Brazilian companies that own iron ore assets including Gerdau, Vale and Usiminas.
Bradesco BBI analyst Thiago Lofiego said the global steel and iron ore markets are still being affected by the coronavirus effect, however, he said the trend should change in H2.
“We’re slowly increasing positions (stocks) at companies like Vale, Gerdau, Usiminas and GMEX, as we seek a normalization (in the markets) by H2,” he said, according to a media report by InfoMoney.
The analyst said the impact of coronavirus should be provisional and will be probably offset in the coming months. Bradesco BBI estimates iron ore prices to reach between $75/mt and $85/mt, adding that Australian supplies of iron ore might be interrupted due to the cyclone season, which could benefit Brazilian supplies of the commodity.