Investment case
We believe that iron ore prices will remain buoyant for longer due to the combination of persisting supply constraints and the recent pick-up in Chinese seasonal demand.
While no pure-play ETF exists to get exposure to iron ore prices, we propose Ferrexpo (FEEXF), a Swiss-based mining company, with its iron-ore mining capabilities in Ukraine, as a potentially very attractive opportunity to assert upside exposure to iron ore prices.
While Ferrexpo has a significant exposure to iron ore, it has recently sold off massively following an accounting investigation to trade at a