Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
HSBC Holdings said that despite the damage to China’s steel demand prospects from the real estate crisis, the average price of iron ore this year will exceed $100 per ton due to the tight global iron ore market. As China heavily relies on importing iron ore for steel production, 73.9% of globally shipped iron ore goes to China. For iron ore shipments to continue growing, China’s steel production must recover, internal demand strengthen, or exports increase.
Analysts, including Howard Lau, stated in a report that the global seaborne steelmaking raw materials market will remain in deficit in 2024-2025, with growth in steel production outside China (particularly in India) contributing to consumption.
Iron ore prices have fluctuated this year, with a nearly one-third drop in the first quarter due to concerns about weakening Chinese demand, including briefly falling below $100, only seeing some rebound this month. As the top importer, China has been striving to rejuvenate the real estate market, a significant driver of steel demand. Leading steel industry groups have been calling on members to cut production to address these challenges.
Lau mentioned, “We expect steel demand growth to moderate over the next five years, with steel demand growth rate around 2% as China cuts production. However, India is ramping up efforts and is set to have the fastest global steel consumption growth rate. We do not anticipate significant growth in iron ore production from major producers. Meanwhile, we expect iron ore demand to remain robust, reflecting our estimates for global steel production.”
As of 2:53 PM in Singapore, Singapore iron ore futures fell by 0.8% to $117.10 per ton, with the average price so far this year at around $119 per ton, slightly higher than in 2023.
