Global iron ore short-term outlook August 2022 Report

Commodity Market Report 31 August 2022

This report is currently unavailable

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

Iron ore price dropped again below $100/t at the end of August as Covid-19 and a property sector slowdown pressured steel demand in China. However, supply side issues have limited the downside and China’s pro-growth efforts create upside to current prices. China's economic growth continues to be affected by Covid-19 while its real estate market is struggling. But Beijing is taking more steps to boost economic activity (investment in infrastructure projects, cutting key interest rates to increase financial liquidity). Our view remains that from an iron ore balance of risks point of view, iron ore should rebound from current level on the back of China’s stimulus measures.

Supply issues provide a floor to wobbly iron ore prices, stimulus measures in China create upside
Technical perspective
High grade ore, lump and pellet
Situation in Ukraine is deteriorating further
Weakness in India iron ore production continues
Chinese domestic ore supply may improve in 2H 2022
Capesize rates fall to six-month lows on uncertain economic outlook
Chinese iron ore port inventories stabilised in August