The BHP (ASX:BHP) share price is Goldman Sach’s top pick for iron ore

What a year 2020 was for iron ore. The steel-making metal soared to a 7-year high while ASX iron ore miners delivered market leading returns on improved profitability and record dividends. 

The Goldman Sachs commodities team is bullish on commodities and iron ore in 2021. Its 2021 sector outlook and themes report released on Wednesday points to recovering global demand, low inventories and supply constraints and a weakening US dollar to support commodity prices.

In this report, the BHP Group Ltd (ASX: BHP) share price has emerged as the broker’s top iron ore pick. 

Bullish but valuations are fair

Despite the bullish sentiment for commodities and iron ore, Goldman views the sector as ‘fairly valued based on a discounted cash…