The iron ore market can't catch a break. The slowdown in China has already hammered prices by close to 50 percent this year and now Goldman Sachs has slashed its price forecast for the raw material used in steel-making.
Seen as a key gauge of the global economy, iron ore prices tanked to $37 a ton last Friday, the lowest since at least 2008 due to a slowdown in construction activity in largest consumer China.
The break below $40 also came a year ahead of Goldman Sachs' schedule, the investment bank said in a report on Wednesday.
There is likely to be more downside, the house added, cutting its price forecast for iron ore to $38 in 2016 – down 13 percent from its previous call of $44.
Goldman tips iron prices to fall to $35 a ton in 2017 and 2018, down 14 percent from its previous prediction of $40.