International credit rating agency Fitch Solutions’ BMI Country Risk and Industry Research unit has revised down its iron ore price forecast for 2024 from $120/mt to $110/mt. The revision is a result of downward pressure on the iron ore market due to weak demand in China and healthy iron ore production. Over the long term, BMI expects iron ore prices to decline to $78/mt by 2033.
BMI expects the negative sentiment over the sluggish Chinese real estate industry to continue, further capping prices. “We maintain our view that iron ore prices will consistently trend downwards, as cooling steel production growth and higher iron ore output from global producers will continue to loosen the market,” BMI noted.
