Macquarie Group Limited’s (ASX:MQG) banking arm Macquarie Bank has forecast strong Chinese steel production, fuelling demand for its main ingredient iron ore.
The bank expects the latest Chinese steel production figures, due this Friday, will likely push up toward last year's peak levels and perhaps even exceed them.
Easing liquidity in China has been cited as the reason for stronger steel demand in the short term.
The bullish outlook comes as the International Monetary Fund predicted last week commodity prices will fall within the next year.
In the first half of its 2012 financial year Macquarie Group reported a net profit of $308 million.
