Global iron ore short-term outlook February 2023
Sentiment in both steel and iron ore remained positive this month. Iron ore consolidated above US$125/t in February as the market is factoring in China as the stabilising force in 2023. We expect to see Chinese iron ore demand continue to gradually improve going forward, lending price support throughout the seasonal increase in construction activity in China. We have increased our price forecast for 2023 to US$115/t to account for the current price strength. However, we expect to see the current optimism that is providing support to prices to fizzle out later in the year as supply seasonally improves.