Global iron ore short-term outlook June 2022
Chinese steel demand expected rebound has disappointed causing steel and iron ore prices to contract month on month. The situation in regard to Covid is still fluid and fears of further restrictive measures on economic activities is keeping the market nervous about Chinese steel consumption. The market will continue to be driven alternatively by demand concerns and expectations of a demand rebound. We remain of the view that the situation is more likely to improve than deteriorate in the short term. On the pricing front, sentiment is weak currently, but, we expect the situation to gradually improve and iron ore price to revert back towards the $130 mark over H2 2022.