Goldman Sachs Predicted Deficit Iron Ore Market in 2024

SEATTLE (Scrap Monster): Goldman Sachs predicted notable deficit in global iron ore market during the current year. This shift, mainly driven by falling inventories and reduced production, is likely to impact steel production and construction sectors. It highlighted that the iron ore market is currently facing an unexpected and significant shortfall.

The global iron ore supply recorded a decline, falling from 1.557 billion tons in 2022 to 1.536 billion tons in 2023. The leading iron ore producers such as Brazil and Australia reported lower-than-expected outputs, impacted by several operational challenges.

The challenges faced by Chinese property sector may limit local steel demand growth, which in turn may impact iron ore demand.

According to Goldman Sachs, the yearly average price of benchmark 62%-grade iron ore is expected to surge higher by 22% in 2024, in comparison with the previous forecast of $90 to $110 per tonne.

While the iron ore market is forecast to record deficit in the near term, the long-term outlook for the market depends on various global economic and industrial factors. The shortfall could be effectively addressed by incorporating innovation and technological advancements in mining as well as ore processing. Efficient mining practices and sustainable resource management could bring about market stability in the long run, Goldman Sachs noted.