Fitch Solutions revises iron-ore price forecast to $125/t for this year

These price expectations are driven by ongoing optimism and a stronger-than-expected recovery in the Chinese economic recovery, the firm says.

Fitch Solutions believes market optimism, coupled with an improving demand outlook, will support prices in the near term. China’s pivot away from its zero-Covid-19 policy and minimal resurgence of Covid-19 in the aftermath, combined with strong domestic sales and purchasing managers' index figures bode well for metal demand in 2023, the firm says.

Fitch Solutions expects China's economy to outperform developed markets this year, with growth to come in at 5% year-on-year, in line with the latest growth target released by the government, which marks a strong improvement on the 3.3% growth of last year.