Iron ore price reverses to losses as weakening China steel consumption drags
Apparent consumption of five major steel products slipped by 2.1% week-on-week.
Industrial metal prices should fall next year as lower global economic growth drags on demand, notably in China, the world’s largest consumer of raw materials, Fitch Ratings said on Friday.
Fitch said in a report that London’s 2024 benchmark copper price could slip 2% to $8,600 per metric ton, while iron ore could decline by up to 8% to $111 per ton and zinc slide about 29% to $2,550 per ton.
Gold, it said, is a likely exception due to expected US interest rate cuts next year, which could help spot prices rise 11% to $1,900 per ounce.
The credit rating firm noted that some mining companies are facing operational difficulties that have generated falls in their production, such as Chilean state-owned Codelco, the world’s largest copper producer.
In Latin America, Fitch added, regional debate around nationalizing the mining sector in areas like Chile and Peru had begun to ebb.
(By Marion Giraldo; Editing by Kirsten Donovan)
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