Global iron ore short-term outlook August 2023

Iron ore prices have experienced a tumultuous journey over the course of August, but the monthly average only contracted to US$109/t (down by US$4/t month-on-month) as newly introduced support measures for the property sector in China helped iron ore prices to rally in the later part of August. In addition, the lack of restrictions on steel output has added a positive undertone to the prevailing sentiment. As concerns persist about China's economic growth, the direction of prices continues to hinge on updates regarding China's stimulus measures. Nonetheless, we still expect a pullback in iron ore prices due to the implementation of directives by Chinese authorities to curb steel production this year.