In August 2023, iron ore was valued at approximately 110.2 U.S. dollars per dry metric ton unit (dmtu), as compared to 108.85 U.S. dollars per dmtu in the same month of the previous year.
Iron ore prices and production
Iron ore refers to the minerals and rocks from which metallic iron is economically viable to extract. Pig iron, which is one of the raw materials used in steel production, is derived from iron ore. The price of iron ore has fluctuated a great deal over the last twenty years. In 2003, one dmtu of iron ore cost 30 U.S. dollars, and increased to a high of 168 U.S. dollars per dmtu in 2011. The price saw dramatic drops in the past decade, from 139.87 U.S. dollars per dry metric ton unit in March 2013 to 40.50 U.S. dollars per dmtu in December 2015. Since then, the price has increased gradually to 214.14 U.S. dollars per dmtu as of July 2021, before dropping sharply in August 2021.
Iron ore producers
Overall, the global production of iron ore did not decrease when the prices dropped. In fact, an increase in production among several of the world's largest iron ore producing countries was observed in the past five years. Australia produced 900 million metric tons of iron ore in 2020, an increase of 83 million metric tons over the country's 2015 production. China is also among the world's largest iron ore producers, though its production is calculated differently than in other countries. Based primarily on the production of raw ore rather than usable ore, China produced an estimated 340 million metric tons in 2020, a notable decrease from 1.45 billion metric tons produced in 2013.
FAQs
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.
What is the projection for iron ore prices? ›
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.
What is the target price for iron ore? ›
Citi's iron ore & ASX miners price target changes
In a separate research report released on Monday, Citi downgraded its iron ore price forecast for calendar year 2024 by 4% to US$116/t but increased it by 1% for calendar year 2025 to US$101/t.
What is the trend in iron ore prices? ›
Iron Ore Spot Price (Any Origin) is at a current level of 109.79, down from 124.39 last month and down from 128.37 one year ago.
Why are iron ore prices crashing? ›
The fall in the iron ore price is largely being caused by weak steel production in China. Credit: A. PAES via Shutterstock.com. Iron ore futures prices continued their fall on Monday to the lowest level in more than four months.
Where are iron ore prices heading? ›
Iron ore price forecast
Looking ahead, Goldman Sachs believes the benchmark iron ore price will average US$111 a tonne in 2024. After which, the broker is forecasting weaker prices the following year. It expects an average benchmark iron ore price of US$95 a tonne in 2025.
Are iron ore prices falling? ›
Thus, prices for raw materials fell to their lowest level since August 2023. In February, iron ore prices fell by 10.6% on the Singapore Exchange and by 7.6% on the Dalian Exchange, and since the beginning of the year, the decline was -19.5% and -25.3%, respectively.
Why iron ore prices are rising? ›
Despite challenges in the housing market, iron ore imports into China continue to rise. Sectors like automotive and construction continue to drive steel production, thus fueling demand.
Who buys the most iron ore? ›
China is by far the world's leading iron ore importing country. In 2021, China's iron ore imports amounted to a value of nearly 174 billion U.S. dollars, which accounted for over 70 percent of global iron ore imports that year based on value.
What is the prediction for iron ore in 2024? ›
In 2024, the price of iron ore is expected to reach $105/t, in 2025 – $90/t, and in 2026 – $85/t.
Our view is that the price for 62% Fe fines CFR China is poised to average around US$110/t in 2024 and US$100/t in 2025. There is no change to our view that prices will trend lower over the next five years in anticipation of easing supply constraints and moderation in Chinese demand.
What is happening with iron ore? ›
The longer-term outlook is also looking shaky, as supply is eventually set to be boosted by a massive new iron ore mine in Guinea, while Chinese steel mills will become less dependent on mined ores as the country starts to develop larger volumes of steel scrap, according to Tom Price, senior commodities analyst at ...
How much is a ton of iron? ›
What is the range of iron scrap prices? Today, iron prices sit in a range trending around $. 04 per pound or $92 per ton.
Is the demand for iron ore increasing? ›
Iron ore exports are estimated to have risen 50% to a record $149 billion in 2020-21 (Chart), underpinned by surging prices amid strong Chinese demand and supply issues in Brazil. Prices are expected to moderate and see iron ore export earnings fall over the coming years.
Why is iron so cheap? ›
Iron eventually became the least expensive metal on Earth. That's because iron, as found in ores, is our most plentiful element by mass. Iron makes up most of Earth's core, which produces Earth's magnetic field, protecting us from cosmic rays and solar wind.
What is the future prospect of iron ore? ›
It is projected that the Iron Ore market would increase at a remarkable rate each year (CAGR 2024-2031). Global Iron Ore Market Global Iron Ore Market was valued at USD 182130 million in 2019 and it is expected to reach USD 222450 million by the end of 2026, growing at a CAGR of 3.2% during 2021-2026.
What is the iron ore market outlook for 2030? ›
Global iron ore production is expected to grow marginally at a compound annual growth rate (CAGR) of 1.9% over the forecast period to reach 3,002.8Mt in 2030.
Should I invest in iron ore? ›
Investing in iron ore shares is an increasingly popular strategy for both seasoned and novice investors. Given Australia's rich iron ore mineral resources here, particularly in regions like the Pilbara, the mineral resources industry represents a substantial portion of the country's economic activity.
