The iron ore market is looking at a shortfall for the rest of the year due to low inventories and falling production, said Goldman Sachs.
"Rather than facing a surplus for this year, the iron ore market is now set for a clear deficit," Goldman said in a recent report.
The metal is primarily used to make steel, an important material in construction and engineering projects.
That being said, Goldman remains cautious in ascribing too much optimism in the uptick of steel demand coming out of China's embattled property sector.
China's property crisis has been one of the biggest spanner in the works in achieving a sustainable economic recovery.
Persons:
Goldman Sachs, Goldman
Locations:
China's