{"id":1132388,"date":"2019-08-13T16:41:54","date_gmt":"2019-08-13T21:41:54","guid":{"rendered":"https:\/\/www.mining.com\/?p=999252"},"modified":"2019-08-13T16:41:54","modified_gmt":"2019-08-13T21:41:54","slug":"iron-ore-prices-have-peaked-will-lose-steam-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1132388","title":{"rendered":"Iron ore prices have peaked, will lose steam \u2014 report"},"content":{"rendered":"<p>Iron ore prices have peaked and will head lower from spot levels over the rest of the year as supply issues ease and Chinese demand temporarily softens due to current&nbsp;yuan&nbsp;strength, <em>Fitch Solutions<\/em>\u2019 latest commodity price forecast finds.&nbsp;&nbsp;<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>While iron ore prices will see a correction in the coming months, <em>Fitch<\/em> analysts do not expect a strong collapse. Economic stimulus provided by the Chinese government to&nbsp;stabilise&nbsp;growth has and will keep steel production strong in 2019 and 2020, especially with the re-escalation of the trade war with the US, boosting demand for iron ore, the report maintains.&nbsp;&nbsp;<\/p>\n<p>For the next three to six months,&nbsp;<em>Fitch <\/em>analysts have&nbsp;raised their iron ore price forecast for 2019 from $80\/tonne&nbsp;to $90\/tonne&nbsp;as supply disruptions coupled with strong demand resulted in a price rally in Q219 that brought the year-to-date average higher.&nbsp;<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/08\/Fitch-graf-1-1.jpg\" alt=\"\" class=\"wp-image-999254\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/08\/Fitch-graf-1-1.jpg 758w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/08\/Fitch-graf-1-1-300x181.jpg 300w\" sizes=\"(max-width: 758px) 100vw, 758px\" \/><\/figure>\n<p>Iron ore prices started the year with a rally as the collapse of a tailings dam at Vale\u2019s&nbsp;C\u00f3rrego&nbsp;do&nbsp;Feij\u00e3o&nbsp;mine in Brazil in January and the following legal aftermath threatening Vale&#8217;s supply sent prices skyrocketing.&nbsp;<\/p>\n<p>Extreme weather in Australia led to the closure of important ports following which BHP and Rio Tinto revised their production guidance downwards,&nbsp;catalysing&nbsp;further price rallies.&nbsp;<\/p>\n<p><em>Fitch <\/em>believes that the iron ore price rally has reached its pinnacle<em>&nbsp;<\/em>and prices will now embark on a correction as exports from supplying countries revive and a weakening yuan dampens Chinese demand.&nbsp;&nbsp;<\/p>\n<p>In 2020, <em>Fitch <\/em>expects prices to hold up as Chinese demand remains strong as a result of infrastructure project constructions rolling on. Analysts believe prices will average $80\/tonne, lower than 2019, as they will start from a lower base.&nbsp;<\/p>\n<p>Beyond 2020, <em>Fitch<\/em> expects prices to drop from an average of $80\/tonne&nbsp;to $57\/tonne&nbsp;by 2023.&nbsp;&nbsp;<\/p>\n<p>Read the <a href=\"https:\/\/www.fitchsolutions.com\/products\/sector-intelligence\"  rel=\"noreferrer noopener\" aria-label=\"full report here (opens in a new tab)\">full report here<\/a>.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>But for the short term, Fitch analysts have raised their iron ore price forecast for 2019 from $80\/tonne to $90\/tonne.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1132388"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1132388"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1132388\/revisions"}],"predecessor-version":[{"id":1132403,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1132388\/revisions\/1132403"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1132388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1132388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1132388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}