Covid-19 impact on iron ore market — report

The mining industry is deeply impacted by the covid-19 pandemic, and the situation continues to evolve as the virus spreads throughout the globe.

In its latest report on the coronavirus impact on the iron ore market, Fitch Solutions has revised down most of its 2020 mining and metals production and consumption forecasts and warns it will keep adjusting estimates in the coming weeks.

However, Fitch analysts maintain their iron ore price forecast for 2020 at $85/tonne, as prices remain resilient despite the covid-19 backdrop that has resulted in the decline of other metal prices.

After averaging $90.4/tonne in 2019, iron ore prices have averaged $83.5/tonne in the year to date and are currently hovering around $81.8/ tonne.

Fitch expects prices to further recover from spot levels in H220 as steel production in China gears up.