The Australian government's Department of Industry, Innovation, and Science has predicted a decrease in the revenues of the country's mining companies from the export of iron ore in the 2023/2024 financial year to around AUD 100 billion from AUD 121 billion in the previous financial year.
The decrease is expected to continue to AUD 75 billion in the 2027/2028 financial year due to a gradual decrease in iron ore prices.
The stabilization of China's real estate sector and the expected growth of steel production in blast furnaces in 2023 are critical factors that may help support demand for iron ore in the current year. However, the uncertainty remains due to China's plans to decrease steel production, unstable demand for finished products, and the prospects of increased iron ore supply.
As of March 2023, iron ore prices have increased due to the reduction in inventories in Chinese ports, but market uncertainty remains. Prices are expected to decreased to around $90/tonne by the end of 2023.
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