International credit rating agency Fitch Ratings has announced that it has revised its metals and mining price assumptions for 2022, reflecting evolving economic growth expectations and demand and supply dynamics.
The agency has decreased its iron ore price assumption for 2022 to $115/mt from $120/mt and has cut its coking coal price assumptions for this year to $370/mt from $400/mt, both reflecting lower steel demand, particularly in China, which leads to steel production curtailments and lower demand for steelmaking inputs, falling steel producers’ margins and a build-up of iron ore inventories.
Nickel price assumptions for this year have also been reduced, from $25,000/mt to $24,000/mt, reflecting subdued demand from the stainless steel sector, while production levels remain healthy, particularly in Russia and Indonesia. However, long-term demand from electric vehicle production should support longer-term prices.
