Australian Bank expects iron ore prices to fall, coking coal prices to rise

Wednesday, 01 June 2022 17:21:43 (GMT+3)   |   Istanbul
       

The Commonwealth Bank of Australia (CBA) has revised its long-term iron ore and coking coal forecasts amid the pandemic, lower Chinese commodity demand, and the war in Ukraine, according to media reports.

The CBA expects iron ore prices to fall to US$120/mt by the end of September and to US$100/mt by the end of the year. This fall reflects China’s plan to cut steel production this year, maintaining its output level below 2021 levels. For 2023, the bank anticipates a further 20 percent decrease to US$80/mt for iron ore prices and prices are expected to stay at that level into 2025. The prices are currently around US$135/mt.

In July last year, iron ore prices had reached about US$200/mt and then decreased to US$92/mt in November.

In addition, the bank has also revised its coking coal price outlook, expecting coking coal prices to increase from US$143/mt to US$150/mt, taking into account the lack of investment in coking coal production. As a result of the increase in coking coal prices, decarbonization efforts may accelerate.


Similar articles

Fitch Ratings raises iron ore price assumptions for 2024-2026 amid limited supply

22 Mar | Steel News

India’s coking coal port traffic up 10% in April-February of FY 2023-24

11 Mar | Steel News

CISA: Coking coal purchase cost in China down 11.21 percent in January

29 Feb | Steel News

Metinvest’s pig iron and crude steel output down in 2023

21 Feb | Steel News

India’s coking coal port traffic up 11 percent in April-January

06 Feb | Steel News

CISA: Coking coal purchase cost in China down 18.75 percent in 2023

31 Jan | Steel News

India’s coking coal port import traffic up 13% in April-December

05 Jan | Steel News

CISA: Coking coal purchase cost in China up 2.03 percent in November

29 Dec | Steel News

SteelOrbis year-end review: Iron ore and coking coal prices to remain high in 2024 owing to demand

26 Dec | Scrap & Raw Materials

SteelOrbis year-end review: European steel industry loses its competitiveness

26 Dec | Steel News