Macquarie Bank raised its forecast for iron ore and coal prices

Macquarie Bank has released a summary of its recent commodity price forecasts, adjusted for factors both within and outside China. The bank has changed its forecasts for the next couple of years.

“A large rise in prices for metallurgical and thermal coal is forecast for 2018-1919. An increase of 10-45% as we came to account for the current shake-up in China's coal industry, although we still believe the first quarter represents the peak momentum for both commodities, ”says an analyst at Macquarie Bank.

“We also revised steel and iron ore on the back of improved demand from China and rising costs.

"The entire complex remains vulnerable to a slowdown in the Chinese housing sector, but the reduction in Chinese steel potential should prevent a rebound in Chinese steel exports, which has a positive effect on steel utilization and profitability in developed countries."