JSW Steel, one of the largest Indian steelmakers, foresees iron ore prices to decline next year due to slack demand from China, the biggest consumer, and expects a recovery in supplies, according to Bloomberg.
According to JSW Steel, iron ore prices might range between $80/mt and $85/mt during the rest of this year, and might drop further to $60-65/mt the next year. The joint managing director of the company Seshagiri Rao said iron ore prices have benefited from speculation and there is no reason for iron ore prices to trade at elevated levels of about $95/mt.
“Gradually we are seeing some moderation in steel production globally and, once the crude steel production comes down, including in China, then automatically the demand for raw material should come down,” Bloomberg cited Mr. Rao as saying.