Vale is expecting a drop in supply while Morgan Stanley sees an increase in Chinese demand over the four quarter, contributing to iron ore price gains later this year, writes Matthew McCall for MarketWatch.
In contrast, Goldman Sachs Group argues that the supply glut will continue to expand and weigh on prices, with global supply outpacing demand until 2017, pointing to a weak demand outlook in China. [Steel ETF Starts Topping Materials Rivals]
The Market Vectors Steel ETF tracks 29 global companies that are involved in the production of steel products or mining and processing of iron ore. For instance, RIO makes up 11.8% of SLX while VALE accounts for 11.7% of the ETF’s underlying holdings.
Market Vectors Steel ETF
For more information on the materials sector, visit our materials category.
Max Chen contributed to this article.