Global iron ore prices to remain rangebound for over a year - Moody's
This story was originally published at 13:03 IST on 14 May 2025
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NEW DELHI – Global iron ore prices are likely to remain rangebound for more than a year amid subdued steel demand, abundant supply, and limited earnings growth for major producers, Moody's Ratings said in a report. Prices are expected to move between $80 and $100 per tonne. However, even if prices drop below $80 per tonne, major producers will continue to operate profitably because of their low production costs, it added.
Demand for lower-grade iron ore remains constrained due to weak steel demand and a broader shift toward cleaner production methods. Softness in key steel-consuming sectors such as real estate and automotive, coupled with sluggish manufacturing activity, will weigh on global steel and iron ore demand through 2025.
"This will be exacerbated by China's structural decline in steel production, driven by a slow recovery in the property market and likely reduced export demand amid rising trade tensions and tariffs," the report said. Iron ore is primarily used in steelmaking, and China remains the world's largest steel producer.
Meanwhile, iron ore prices will face additional pressure from increasing supply, the report stated. Global production is set to rise over the next two years, supported by greater investment in both new and existing mines. In a push for self-sufficiency, China will continue to maintain elevated output levels, with annual production rising by around 20% over the past five years. End
US$1 = INR 85.37
Reported by Afra Abubacker
Edited by Nishant Maher
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