Iron ore prices have stayed above $100/tonne for most of the year, despite analyst expectations of a bear market. In the past week, iron ore has settled over US$135 a tonne, its highest closing level in a year. It’s been the best performing industrial metal of 2023, defying expectations it would collapse.
In August, amid depressed price action, Goldman Sachs forecast a bear market saying iron ore would trade around $90 a tonne by December. The investment firm has since done a backflip as iron ore continues to ratchet higher. Goldman Sachs has now lifted its average 2024 price forecast to $110/t, a 22% increase.
ING Research is more bullish, forecasting prices will average $120/ t next year.
Alien Metals Ltd (LON:UFO) is a global minerals exploration and development company that will shortly make the transition to iron ore producer. The company was formed from Arian Silver in late 2018, retaining some of the companies more valuable Mexican projects before embarking on an acquisition led strategy, headed up by an excellent geological team and targeted entirely on Western Australia.