Outlook Commodity Prices - BMO Capital

Iron ore is about to crash according to BMO Capital. I would take profits in Vale.

 

The Holy Trinity

China GDP rose 18% in Q1 2021.

U.S. GDP estimates were higher.

It is a very good time to invest in commodities as they are all breaking out. To do this, buy the holy trinity: VALE, SBSW, CSFFF.

 

Iron Ore

China's iron ore production is not growing.

This is because costs of production are very high in China.

China is the largest iron ore consumer and iron ore imports are growing.

China iron ore imports hit a record in 2020.

Iron ore demand is going to grow.

Iron ore is currently in deficit.

Brazil and Australia have the largest iron ore reserves.

Therefore Vale is a good investment.

Vale, a play on nickel boom

 Vale is a good nickel play.

For more info on Nickel.