International credit rating agency Fitch Ratings has announced that it has updated its metals and mining price assumptions for 2022 and 2023.
The agency has maintained its iron ore price assumption at $115/mt for 2022 and at $85/mt for 2023 as global steel demand continues to weaken. Meanwhile, the market is not oversupplied because lower iron ore supplies from Russia and Ukraine offset demand destruction in Europe and other regions.
Coking coal price assumptions for this year and 2023 have also been kept stable at $370/mt and $200/mt, respectively. Coking coal use in power generation amid the European energy crisis and increased thermal coal and gas prices supported coking coal prices in 2022. However, Fitch expects coking coal prices to decline in 2023 due to weaker demand from steelmakers and more stable energy markets. Also, Fitch noted that the potential removal of the Chinese ban on coal imports from Australia may also affect the market.