Industry News

Fitch Solutions joins iron ore price upgrade club

Views : 102
Update time : 2022-02-21 20:46:33

Fitch Solutions has dramatically revised up its iron ore price forecasts for the next two years, noting renewed economic stimulus by the Chinese government targeted towards the infrastructure sector.

The research arm of the global ratings agency has lifted its iron ore price forecast for 2022 from $US90 a tonne to $US120/t and its prediction for 2023 from $US75/t to $US110/t.

The upgrade for iron ore comes after BHP last week posted a 144 per cent jump in first-half profit to $US9.44 billion ($13.22b) while Fortescue Metals Group’s profit slide 32 per cent to $US2.8 billion. Rio will report its full-year results on Wednesday.

“Chinese demand has once again started picking up, and will remain strong in 2022-2023 with the government’s renewed stimulus towards the infrastructure sector in the face of slowing economic growth,” Fitch said in a note.

“On the supply side, we do not expect any significant increase in iron ore supply from major producers who will place an emphasis on value over volume in 2022, and this is added to high supply risks over weather issues and continued COVID-19 operational disruptions.”

Related News
Read More >>
Enhancing the durability of aluminium profiles with Alborz Pasargad’s nanostructured coatings Enhancing the durability of aluminium profiles with Alborz Pasargad’s nanostructured coatings
May .29.2025
Enhancing the durability of aluminium profiles with Alborz Pasargad’s nanostructured coatings
NASA’s supersonic aircraft clears ‘aluminium bird’ testing, setting up the runway for its first flight NASA’s supersonic aircraft clears ‘aluminium bird’ testing, setting up the runway for its first flight
May .29.2025
NASA’s supersonic aircraft clears ‘aluminium bird’ testing, setting up the runway for its first flight
GAC’s 2Mt bauxite pile-up in Guinea: What built it, what’s blocking it, and what could break the deadlock GAC’s 2Mt bauxite pile-up in Guinea: What built it, what’s blocking it, and what could break the deadlock
May .29.2025
GAC’s 2Mt bauxite pile-up in Guinea: What built it, what’s blocking it, and what could break the deadlock
Russia’s largest aluminium foil mill eyes 12% output growth following investment from RUSAL Russia’s largest aluminium foil mill eyes 12% output growth following investment from RUSAL
May .29.2025
Russia’s largest aluminium foil mill eyes 12% output growth following investment from RUSAL