Global iron ore supply to grow in 2024 – forecast

Market drivers will be investments in new projects and improvement of mining operations

Global iron ore supply is expected to grow in 2024, but experts are cautious about future prospects given potential challenges, SteelRadar reports.

The supply of iron ore is expected to increase next year due to investments in new projects and efforts to improve mining operations. Mining companies are actively working to meet the growing global demand for iron ore, which is supported by the development of China’s steel industry and global infrastructure development.

Lei Pingxi, chief engineer of the China Association of Steel and Mining Enterprises, noted that the industry is expected to grow by about 2% annually, which will lead to an increase in iron ore supply by about 45 million tons next year.

Despite the positive expectations, industry experts are cautious in their forecasts, as there are certain challenges that may prevent the sector from realizing its potential. Environmental regulations and logistical constraints pose risks to the industry’s expansion plans.

China, the world’s largest consumer of iron ore, is expected to continue to drive demand for this raw material. Steel production in the country is forecast to maintain its momentum in the coming years.

The balance between supply and demand, as well as the situation in the steel industry, will be crucial for the stability of the ore market.

As GMK Center reported earlier, the largest steel producer in China, Baosteel, stated that iron ore prices departed from the fundamental foundations of the situation between supply and demand. The company believes that prices for these raw materials should return to a more reasonable range. Baosteel called on the government, the industry association and related enterprises to work together to cool down speculation in the iron ore market. Iron ore futures on the Dalian Commodity Exchange rose by 978.5 yuan per tonne ($137/t) by midday on November 21.