International credit rating agency Moody’s has stated that it expects iron ore prices to remain under pressure due to weak iron ore demand from China and high global supply. The prices are forecast to remain at around $80-100/mt over the next 12-18 months.
The agency stated that the weakness in the demand is due to a decline in China’s steel production and a global shift toward cleaner steelmaking that is dampening demand for lower-grade iron ore. Meanwhile, supply remains high with increased output from major producers and new projects. Still, major producers will continue to operate profitably because of their low production costs.
