China Steel Group predicts a decline in iron ore prices

Recent speculation-fueled increases in iron ore prices are unsustainable, and that trend will be reversed when the market stabilizes, said a senior executive from China’s highest industry body.

“Iron ore prices will tend to decline as the market digests and materializes price speculation,” Luo Tiejun, vice chairman of the China Iron and Steel Association, said at the Mysteel Global annual conference in Shanghai on Saturday, according to the transcript of his speech. He made comments outlining the prospects for the next year.

Iron ore prices have surged over the past month, with benchmark spot prices rising to a nine-year high of over $ 160 per metric tonne as China’s economic recovery coincides with limited supply.

Iron ore prices will peak in the first quarter of next year and then decline as overseas shipments to China increase. The researcher estimates that the spot price in 2021 could range from $ 110 to $ 120 per tonne, up from $ 109-110 this year.

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