Iron ore prices have risen by more than 10% since the beginning of July

After more than three months of lull, the global iron ore market has confidently entered an upward trajectory in July. Futures for September on the Dalian Exchange rose by 13.2% since the beginning of the month, exceeding $112/t, and August contracts in Singapore – by 10.6%, to almost $103/t. According to the results of the week of July 18-25, the increase was 2.4% and 2.3%, respectively. The main drivers were expectations of government incentives in China and the announcement of strategic infrastructure projects.
The iron ore market continues to fluctuate within the framework of a strong fundamental recovery and political uncertainty. On the eve of the Politburo meeting in Beijing, traders are being cautious, fixing profits and reassessing risks. However, the consistently high level of steel production and the actual start of large infrastructure projects create the basis for further price growth in August.In the near term, everything will depend on how ambitious new government initiatives will be. If China confirms its policy of stimulating infrastructure, iron ore will have every reason to stay above $100/t in the future.As reported by GMK Center, Moody’s expects iron ore prices to remain at $80-100/t in the next 12-18 months. This forecast is due to weak demand from China and high supply on the world market.

A similar view was expressed by analysts at BMI Country Risk and Industry Research. They maintain the forecast for the average annual price for 2025 at $100/t, although they recognize the presence of pressure from weak demand.

 

Source: https://gmk.center/ua/news/cini-na-zaliznu-rudu-z-pochatku-lipnya-zrosli-na-ponad-10/