Goldman Sachs: Metals rally overprices impact of Trump’s infrastructure plan - CNBC

Analysts at Goldman Sachs published their latest note on Monday, cautioned that the sharp rally in metals, backed by the impact of Trump’s infrastructure plan, is overdone.

Key Quotes via CNBC:

"We believe that the initial reaction in iron ore and copper prices has been excessive and reiterate our view for sequentially lower prices" 

“This was because iron ore and copper prices depended not just on U.S. but global demand. The U.S. accounted for just 4 percent of the seaborne iron ore market in 2015—versus China's 70 percent”

"One intuitive way of seeing this is that China exports 100 million tons of steel per year, roughly the same amount of total U.S. steel consumption”

“To the extent that higher tariffs slow global trade and Chinese steel exports, infrastructure spending in the U.S. may only redistribute iron ore demand from China to the U.S. rather than lifting global demand for iron ore”