The price for this raw material is expected to reach $118/t in 2023
The international rating agency Fitch Ratings has raised its price forecast for iron ore and coking coal for 2023-2026.
The price of iron ore is expected to reach $118 per tonne this year (up from $110 per tonne in the previous forecast).
In 2024, the price for this raw material is forecast at $95/t, in 2025 – $80/t, in 2026 – $75/t. The previous forecast was $85/t, $75/t and $70/t, respectively.
The increase in short-term iron ore assumptions, Fitch said, reflects prices since the beginning of this year and the expected replenishment of reserves in 2024 due to low levels.
«We do not expect plans to coordinate all iron ore purchases in China, which would offset some price growth, to be implemented in the short term due to the large number of brokers,» the agency noted.
The medium-term outlook reflects the longer time needed for additional capacity to come on line, which means there will be no oversupply until then.
