In the quarterly iron ore report of Fitch, the iron ore price forecast for 2022 has been raised from US$120/ton to US$130/ton, while the price forecast for 2023 has been maintained at US$110/ton, as prices continue to support the upward trend.

Fitch said that with China's anti-epidemic measures and relaxation related to COVID-19, as well as the government's new stimulus measures for the infrastructure industry in the context of slowing economic growth, China's demand began to rebound again and will maintain a strong momentum from 2022 to 2023.

On the supply side, Fitch expected output growth to accelerate by 2026. Therefore, it was expected that the global iron ore production will increase by an average of 2.7% from 2022 to 2026, while the previous five years will have negative growth of 1.3%.

On the other hand, Fitch predicted that China will also increase iron ore production in the next three to four years to increase self-sufficiency and reduce Australian imports.