Daily Management Review

Fitch raises iron ore and coal price forecast for 2023-2024


The international rating agency Fitch Ratings updated its short- and medium-term pricing estimates for coal, iron ore, and base metals. These estimates are used in the agency's projections of operating activities and the financial performance of industry participants.

The agency said in a statement that among other reasons, a drop in investment and production led to an increase in the forecast for thermal coal prices.

The estimate for the average copper price in 2023 was revised downward based on lower quotes this year. The metal's involvement in the energy transition resulted in a constant growth in demand, which has lifted the price projection for the upcoming year.

Since inventories have now dropped to low levels, analysts believe that the change in iron ore price projections indicates an anticipated build-up in inventories in 2024.

source: ft.com