- Published: Saturday, 01 August 2009 05:00
Iron Ore Outlook: Facing a Slow Climb Out of the Pit
Our review of 2008–2009 market developments concludes that an oversupply situation will continue for the remainder of this year and into the next, when prices could begin to stabilize in preparation for a possible upturn in 2011
By Magnus Ericsson and Anton Löf
Steel is a key input in the construction, mechanical engineering and transport vehicle industries—all sectors that are among the hardest hit in the current global economic recession. Consequently, the steel industry is currently facing the worst demand downturn since the oil crisis of 1974-1975 and the iron ore market has, of course, been affected. Iron ore is used almost exclusively to produce pig iron and direct reduced iron (DRI), the main raw materials, along with coke, that are used in production of crude steel.