Global iron ore prices to rise 11% on supply disruptions, China stimulus

China's latest fiscal stimulus is also expected to prop up iron ore demand and hence support prices

International iron ore prices are forecast to rise 11.4 per cent in calendar 2019, buoyed by supply disruptions from key mines in Brazil and Australia and China's fiscal stimulus seen as strengthening steel consumption.

The prognosis is subject to downside risks, especially renewed tightening of environmental policies in China that would restrict steel production.

As per a recent World Bank report on Commodities, iron ore prices registered a sharp increase of 16.2 per cent in Janu­a­ry-March of 2019, primarily because of supply disruptions in 

Brazil and Australia. Following the Brumadinho dam rupture, all of Vale’s upstream tailings dams in Brazil have been decommis­sioned