Iron ore weakness to continue into 2025 and beyond, says Fitch Solutions’ BMI
Looking beyond 2024-2025, BMI analysts maintained their view that iron ore prices will likely follow a multi-year downtrend.
In China, the NDRC has announced a RMB0.028/kWh ($0.04/kWh) power tariff rise for non-residential use. The rise in power costs for the Chinese aluminium smelters that buy power from the grid (accounting for ~45% of Chinese production) highlights the main bullish argument for aluminium prices over the medium term – the outlook for rising costs (particularly energy). While the supply/demand fundamentals for aluminium are clearly weak, rising demand and costs look set to support prices over the medium term. (more…)
