We have raised our average iron ore price forecast for 2019 from USD54/tonne to USD60/tonne as prices will start the year from a higher base following a more expansionary Chinese fiscal policy aimed at cushioning the economy from negative effects of the confrontation with the US that has buoyed steel production and hence iron ore demand over H218.
Our forecasts still mean prices will average lower in 2019 from the current spot level of USD73/tonne, although higher Chinese construction activity as a result of increased approvals of infrastructure projects will prevent any sharp declines in the coming months.
We maintain our view for iron ore prices to trend downwards in subsequent years as Chinese economic growth refocuses away from heavy industry to services, dampening demand for iron ore.
Table of Contents
Commodity Price Forecast
Global Industry Overview
- Global Trends In Supply, Demand And Trade
Industry Trend Analysis
Global Company Strategy
- Rio Tinto
- Anglo American
- BHP Billiton