International credit rating agency Fitch Ratings has announced that it has increased its metals and mining price assumptions for 2023, 2024 and 2025.
The agency has increased its iron ore price assumptions to $100/mt from $85/mt for 2023, to $85/mt from $75/mt for 2024 and to $75/mt from $70/mt for 2025. The revisions are due to the expectation that stronger demand from the steel sector in Europe, North America and other parts of Asia will offset gradually reducing steel production in China. Iron ore supply challenges in Brazil, South Africa and Ukraine support prices in the short and medium terms.
The price assumption for coking coal has been raised to $220/mt from $200/mt for 2023, to $150/mt from $140/mt for 2024 and to $150/mt from $140/mt for 2025, supported by improved demand prospects after China lifted its ban on imports from Australia, increased production costs, and the significant volatility of supply from Australia.
