0105 GMT - Jefferies is downbeat about the outlook for iron-ore demand. It thinks Chinese steel output has peaked and higher-cost capacity will increasingly be cut. That would support an iron-ore price of US$80-US$100/ton, Jefferies says. "With the ramp-up of Simandou, prices will likely average closer to the bottom of that range for the next several years (down from our prior forecast floor of US$90/ton)," Jefferies says. Simandou is the big new iron-ore development in Guinea. Jefferies thinks Fortescue, Rio Tinto and BHP should keep generating strong cash flow from their iron-ore mines. Still, the bank is cautious of the spread to lower-grade iron-ore fines increasing. That would impact Fortescue and Mineral Resources. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

July 01, 2025 21:05 ET (01:05 GMT)

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