ING Predicts Further Decline in Iron Ore Prices
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Dutch-headquartered international bank ING has released its monthly report focusing on the outlook for commodities such as iron ore. The bank has forecast that iron ore prices will continue to decline this year due to subdued demand and sufficient supply.
So far in 2024, iron ore prices have fallen by approximately 33 percent, reaching below $90 per metric ton (mt) for the first time since 2022. This downward trend is primarily attributed to the deteriorating outlook for China, the world's largest iron ore consumer.
The ongoing crisis in China's real estate industry, which accounts for a significant portion of steel demand, has not shown any signs of improvement. The decline in new house construction starts has further suppressed steel demand, making it unlikely for the real estate and construction industries to recover in the near term.
ING has also highlighted the increasing availability of iron ore in China. Inventories at Chinese ports have risen above 150 million mt, surpassing previous levels for this time of year. Additionally, iron ore imports into China have increased by 6 percent year-on-year in the first half of 2024.
The bank believes that the continued weakness in China's real estate sector and the high availability of iron ore in the country will put downward pressure on iron ore prices. ING has predicted that prices will average $100/mt in the third quarter, $95/mt in the fourth quarter, and $106/mt for the entire year of 2024.
Overall, the outlook for iron ore prices remains challenging due to subdued demand and sufficient supply. China's economic conditions and the performance of its real estate sector will continue to be key drivers of iron ore prices in the coming months.
Dutch-headquartered international bank ING has released its monthly report focusing on the outlook for commodities such as iron ore. The bank has forecast that iron ore prices will continue to decline this year due to subdued demand and sufficient supply.
So far in 2024, iron ore prices have fallen by approximately 33 percent, reaching below $90 per metric ton (mt) for the first time since 2022. This downward trend is primarily attributed to the deteriorating outlook for China, the world's largest iron ore consumer.
The ongoing crisis in China's real estate industry, which accounts for a significant portion of steel demand, has not shown any signs of improvement. The decline in new house construction starts has further suppressed steel demand, making it unlikely for the real estate and construction industries to recover in the near term.
ING has also highlighted the increasing availability of iron ore in China. Inventories at Chinese ports have risen above 150 million mt, surpassing previous levels for this time of year. Additionally, iron ore imports into China have increased by 6 percent year-on-year in the first half of 2024.
The bank believes that the continued weakness in China's real estate sector and the high availability of iron ore in the country will put downward pressure on iron ore prices. ING has predicted that prices will average $100/mt in the third quarter, $95/mt in the fourth quarter, and $106/mt for the entire year of 2024.
Overall, the outlook for iron ore prices remains challenging due to subdued demand and sufficient supply. China's economic conditions and the performance of its real estate sector will continue to be key drivers of iron ore prices in the coming months.
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