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.
Iron ore prices continued its strong rally on Monday, adding $3.50 or 3.4% to $105.10 a tonne after a record-setting 5.7% jump on Friday according to data supplied by SteelIndex.
Benchmark 62% iron ore fines at China’s Tianjin hit a three-and-a-half year low of $86.70 earlier this month and this time last year the commodity was still worth $177 a tonne.
Iron ore has been under pressure this quarter as China’s steel industry – responsible for consuming more than half the world’s annual iron ore output – struggles with rising inventories, overcapacity and overproduction.
Caijing reports Lejiang Xu, Chairman of China’s Baosteel Group, said during a company event on Monday that China’s iron and steel producers could experience another round of industry-wide losses in September.
China’s National Bureau of Statistics said that the country produced 2.54 million metric tons of steel per day in August, a 1.4% YoY increase. The increase rate was the lowest in 12 months.
3 Comments
Tony Dopheide
Another gut reaction report. When do we get to see a report based on facts and genuine investigative reporting. Iron ore demand is still strong (although not growing) and we may or may not be seeing traditional 3rd quarter jitters of old. Please write a story referencing real background
Tim Gaynor
You want real back ground? http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy
Endeks Holding
Troubles in China presents opportunities for producers in other countries like Turkey where local markets need more local producers to reduce dependence on China for sales. We have started production this year. http://endeksholding.wordpress.com/