In a striking revelation by investment heavyweight Goldman Sachs (NYSE: GS), a crunch in the global iron ore supply is looming as the year winds down.
The forecasted deficit arises from dwindling inventories and a decrease in production, according to CNBC.
"Rather than facing a surplus for this year, the iron ore market is now set for a clear deficit," Goldman's report added, as noted by the outlet.
Factors contributing to the iron ore deficit include reduced supplies from key producers in Australia and Brazil.
Goldman revised its global iron ore supply estimates for 2023 down from 1.557 billion tonnes to 1.536 billion tonnes.
This revision reflects underperformance in supplies, particularly from Brazil's Vale (NYSE: VALE), which faced setbacks due to a conveyor belt failure at the S11D mine and reduced output in the Southern System.
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