According to a report, Goldman Sachs said that iron ore would be in a shortage for the rest of the year because of low stocks and falling production. The analysts mentioned that Beijing’s recent fiscal spending could help domestic growth with a healthier construction industry and result in higher demand for iron ore.

China announced in late October that it would issue CNY1 trillion in additional government bonds to support efforts in contraction disaster-struck areas and help with disaster relief. However, Goldman Sachs still pays attention to China’s property crisis. It will be important for the sustainable economic recovery of steel demand from the property sector.

Global iron ore supply in 2023 could be lower to 1.536 billion tons from 1.557 billion tons due to the deficit supply from Australian and Brazilian iron ore producers. Brazilian miner Vale just reported a 4% year-on-year decline in the third quarter of iron ore production due to conveyor belt system failure and lower inventory in China. The iron ore price is expected to rise over 20% by 2024.