Looming wave of iron ore supply threatens US$100 price floor


Benchmark iron ore futures have slid 23% this year to about US$109 a tonne as Chinese consumption has slowed. — Bloomberg

IRON ore prices are likely to stay in three digits for the rest of 2024, insulated to a large degree from China’s faltering economy by cost support that kicks in at around US$100 a tonne.

But that could change from next year as a wave of cheap supply starts to build in West Africa, lowering the industry’s average costs and forcing prices to better reflect the long-term decline of China’s steel industry, the biggest consumer of iron ore.

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