Iron ore prices have found a floor over recent weeks after a series of supply-side issues tightened the market despite weakness in China. However, the upside will be limited, according to strategists at ANZ Bank.

Limited upside in iron ore prices

“Iron ore prices have found a floor amid renewed supply-side issues. This could develop into gainsasChinese stimulus measures boost sentiment. Ultimately the upside looks limited, as constraints on China’s steel output should keep demand muted.”

“We have raised our end of year target to $130/t. However, our short-term (0-3mth) target remains unchanged at $145/t.” 

“We expect prices to trend lower in Q4 and into 2023 as the impact of the stimulus measures peter out and iron ore demand ultimately weakens.”