JPMorgan remains cautious on iron ore prices
- Reiterates Neutral rating, price target $7
- Firm maintains the view that market will remain oversupplied. Over the next six months firm expects another 96Mtpa of new capacity to be introduced from the low-cost producers, representing 8% of global supply. That is why firm believes the recent upward action in iron ore and Vale prices is still exaggerated and expects both to revert once the pressure from short covering eases
- Firm prefers Bradespar vs. Vale PNs or Vale ONs