Iron ore prices are on track to end 2022 at their lowest in the last three or four years and will probably languish next year as well, with China and Europe cutting steel output, while pressure mounts from additional supply.
Price forecasts for the key steelmaking ingredient range from about $90 a tonne to a high of $115 by the end of the year, a Reuters survey of five analysts and researchers shows.
Year-end prices have not been in this territory since the 2019 figure of $93 a tonne, itself off the even lower 2018 level of $72.60, data from consultancy SteelHome shows.
"COVID-19 and property sector slowdown continue to weigh down steel demand in China," said Malan Wu, research director at consultancy Wood Mackenzie.
"Prices in Western countries will remain subdued for the rest of the year because of weak demand, high inflation, and fears of recession."
