Iron ore price falls as property crisis threatens to drag down steel industry - MINING.COM (2024)

FAQs

Why is the price of iron ore falling? ›

Iron ore futures prices continued their fall on Monday to the lowest level in more than four months. The price drop has largely been caused by a drop off in steelmaking in China, the top consumer of iron ore.

As a result, it is forecasting an average benchmark iron ore price of US$95 a tonne in 2025. After which, it expects further softening to an average of US$93 a tonne in 2026. Finally, the following year the broker expects a slightly weaker average price of US$92 a tonne in 2027 for the benchmark price.

Iron ore prices in 2024 will range between $99-100 per tonne. In the second quarter and fourth quarter, prices will be at $100/t, and in the third quarter – $99/t. This is evidenced by the forecast of Capital Economics, according to the Australian Financial Review.

The global iron ore market size was valued at USD 279.35 billion in 2023 and is projected to grow from USD 290.25 billion in 2024 to USD 397.98 billion by 2032, exhibiting a CAGR of 4.0% during the forecast period.

China accumulated a majority of the global iron ore imports in 2021, with over 70 percent of total global imports.

Water bodies are polluted during iron ore mining operations. When iron ore mining exposes metal-bearing ores rather than exposing ore bodies naturally through erosion, and when mined ores are placed on earth surfaces in mineral dressing processes, the risk of contamination increases.

A freight train carrying iron ore in Western Australia. Iron ore slumped more than 7% — dropping below the $110 a ton mark — after disappointing demand in China left the market lumbered with swelling inventories.

The total reserves of crude iron ore worldwide were estimated at around 190 billion metric tons in 2023. The total iron content of that amount is estimated to be some 87 billion metric tons.

What is the range of iron scrap prices? Today, iron prices sit in a range trending around $. 04 per pound or $92 per ton.

The iron ore mining market is poised for significant growth in the coming years. According to recent research, the global market size is projected to expand at a compound annual growth rate (CAGR) of approximately 4.3% between 2023 and 2033, reaching a valuation of USD 62.3 billion by 2033.

Does iron ore have a future? ›

Experts forecast world iron ore production to grow at a 1.9% compound annual growth rate, touching 3,002.8 MT by 2030. Along with Australia, Brazil will be one of the main contributors to this increase.

Iron ore prices have slumped 17% in the first two months of the year, marking the worst two-month stretch since April-May 2023 (-21%).

Tilden Mine

Minntac is one of the largest and is the leading mining company that is involved in iron ore extraction activities in the U.S.A. The mine is located in Minnesota and is owned by the U.S. Steel Company.

This decline is attributed to slowing economic activity in major economies, which has dampened demand amid continued supply recoveries for some base metals. Metal prices are expected to fall 5 percent in 2024, after declining nearly 10 percent in 2023 (y/y). They are projected to stabilize in 2025 (y/y).

The ore shortage, industry sources feel, is due to the rampant export of the crucial steel-making raw material. The domestic sponge iron manufacturers fear a continuous shortage of iron ore may bring it to the brink of collapse.