Iron Ore: Solid outlook beyond possible late year dip

About the author:

Author name:

By Adrian Prendergast

Job title:

Senior Analyst

Date posted:

10 October 2023, 7:00 AM

Sectors Covered:

Mining, Energy

• Iron ore fundamentals remain healthy heading into 2024, but face some short-term risks with mandatory cuts to China steel late in 2023.
• High steel volumes despite low margins suggest overproduction anticipating cuts.
• We maintain our bullish relative call on iron ore heading into 2024.
• In this report we lift our iron ore forecasts, reduce FX, and increase WACC assumptions for BHP, RIO, FMG and MIN (see inside). We maintain ADD ratings for BHP, RIO and MIN, and move FMG to HOLD (from REDUCE).

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