In its 2021-22 federal budget, the Australian Treasury Department has stated that it expects iron ore prices will decrease to $55/mt FOB by the end of March 2022, rather than by the end of September 2021 in its previous forecast, compared to more than $200/mt CFR now.
According to the statement, stronger recovery in steel production outside of China could also provide further support for iron ore and metallurgical coal prices.
China’s ban on Australian coking coal imports negatively impacted the country’s exports and lowered the price of hard coking coal. The Treasury Department indicated that it expects the metallurgical coal spot price to remain at around $122/mt FOB Australia up to the end of March next year.