More downside ahead for Iron Ore – ING

Iron Ore has been one of the worst-performing commodities this year. Hopes of a China recovery in the second half of 2023 should provide support in the medium term. The short-term outlook is more bearish, strategists at ING report.

Iron Ore’s rout to continue until China recovers

“We believe the short-term outlook remains bearish with sluggish demand from China suggesting that prices should trend lower. We expect prices to slide to $85/t in the first quarter of 2023 and hover around $90/t throughout the second and third quarters.”

“Prices should be supported in 2H23 due to expectations of a recovery in China and easing Covid restrictions, with prices moving above $95/t in 4Q.”