International credit rating agency Fitch Solutions in its quarterly iron ore report has revised upwards its iron ore price forecast for 2023 from $110/mt to $125/mt, driven by ongoing optimism from the Chinese economic recovery.
The agency stated that the easing of the zero-Covid policy and the real estate sector reform in China will support iron ore prices in the short term.
On the supply side, Fitch Solutions expects a growth of 3.1 percent until 2028, with new capacities to be commenced in Australia, Brazil and Africa.
In the long term, Fitch forecasts iron ore prices to decline to $50/mt by 2032 due to slower demand growth and more supply.