According to RBC Capital Markets, iron ore prices are primed for a downturn this year after surging in 2016.
"We believe iron ore prices are not sustainable at current levels and expect a pullback in 2017," RBC analysts wrote in a report received on Wednesday. The firm placed first in predicting prices, according to data compiled by Bloomberg.
In 2016 iron ore soared 81% in a rally that caught out many investors after stimulus in China helped sustain steel output. RBC is more positive on the outlook for base metals, which also surged last year, as economies show signs of a pickup.