According to strategists at ANZ, the upside of iron ore prices will be limited because the restriction on China’s steel production should keep demand sluggish.

ANZ has raised its iron ore price target to US$130/ton by the end of the year, but the short-term (0-3 months) iron ore price target kept unchanged at US$145/ton.

With the gradual weakening impact of stimulus measures, which will finally lower demand for iron ore, the bank expected that prices will be in a downward trend in the fourth quarter and next year.