Iron ore was a clear commodity outperformer in 2020, owing to the substantial increase in demand driven by China’s infrastructure stimulus and given the supply constraints. Amid initial fears that the price rally would lose traction in 2021, ratings agency Fitch Ratings expects the annual average iron ore price rally to remain strong, writes CHANTELLE KOTZE.
This is driven by the continued tight market supply, which is expected to continue for some time with new projects only compensating for depleting mines; demand in China is expected to reduce from 2022 with pandemic related stimulus tapering off and the long-term plan to transition to a consumer-led economy, while other parts of the world are expected to compensate with broadly flat global demand post 2021.
Cadence Minerals plc (LON:KDNC) provides mining services. The Company focuses on finding lithium and other technology minerals in new places, as well as offers extracting services.