Australia's Department of Industry, Innovation and Science predicts that the spot price for iron ore fines with 62% iron content will average around US$98 per tonne for calendar 2023, slightly below its previous forecast of US$100 per tonne.
The report highlights the downside risks to global demand recovery for iron ore, with a slowdown in the global economy likely to further deteriorate conditions in the steel sector. China, which accounts for nearly 60% of global iron ore demand, has seen a slower recovery in steel consumption this year than expected.
The overall performance of the economy, including the real estate sector, has been disappointing. The ministry's report predicts that global iron ore prices will decline to an average of US$74 per tonne FOB in 2025 due to a downturn in infrastructure construction. Australia and Brazil, the world's top iron ore producers, will increase iron ore exports in the coming years after new projects are launched in both countries.
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