Demand for Steel Is Robust for 2019, Says UBS’s Gordon

The video discusses the current state of the iron ore market, highlighting a shift from a surplus to a deficit due to the Valley disaster. It examines the potential impact of a Brazilian government review on Valet's operations, which could affect global iron ore prices. The discussion also covers the role of smaller producers and the potential for increased production. Additionally, the video forecasts trends in the steel market, noting that while demand remains robust, margins are under pressure. The forecast suggests a rise in steel prices, contingent on Valet's return to the market.

What was the initial expectation for the iron ore market in 2019 before the deficit occurred?

• A 50 million ton surplus

• A balanced market

• A 20 million ton surplus

• A 30 million ton deficit

What could potentially happen if the Brazilian government conducts a wholesale review of Vale's operations?

• Iron ore prices could rise to $150 a ton

• Iron ore prices could hover around $80 to $100 a ton

• Iron ore prices could stabilize at $50 a ton

• Iron ore prices could drop significantly

What historical event led to a reduction in the number of countries exporting iron ore to China?

• The 2008 financial crisis

• The fall in iron ore prices after 2013

• The rise in steel production in 2010

• The increase in iron ore prices in 2015

How long does it typically take to reactivate mothballed iron ore mines?

• 3 to 6 months

• 1 to 2 months

• 6 to 12 months

• 12 to 18 months

What is the expected impact on steel prices if steel production in China remains flat?

• Steel prices will decrease

• Steel prices will remain stable

• Steel prices will collapse

• Steel prices will rise