When Will Metal Prices Go Down? What Aussies Need to Know

If you’ve been keeping an eye on metal prices lately, you’re probably wondering when they’ll start coming down. Here’s a straightforward look at what’s happening in the market and what we might expect in the coming months.

What’s Going On with Metal Prices Right Now?

The metal market’s been on quite a rollercoaster lately, especially for iron ore – one of Australia’s biggest exports. Since the start of 2024, iron ore prices have taken a hefty tumble, dropping by about 35%.

Right now, you’re looking at around USD 90 per tonne, which is a fair bit lower than what we’ve seen previously.

Why Are Prices Falling?

The main reason behind this drop is pretty simple:

China, our biggest customer for iron ore, isn’t buying as much as it used to. Their property market’s hit a rough patch, which means they’re building fewer apartments and office blocks.

Less building means less need for steel, and that means less demand for our iron ore.

What’s Affecting the Prices?

Three big things are pushing prices around:

1. China’s Building Slowdown

• Their property market’s not as busy as it used to be
• They’ve got more steel than they need right now
• They’re not buying as much of our iron ore

2. Too Much Supply

• There’s plenty of iron ore to go around
• More countries are producing it
• The market’s a bit flooded

3. Government Decisions

• What China does to boost its economy matters a lot
• Their building regulations affect how much steel they need
• Their decisions can change prices pretty quickly

When Might Prices Change?

The experts reckon we might see some changes towards the end of 2024:

• Iron ore prices could bounce back to somewhere between $100-110 USD per tonne if China starts spending more on building projects
• But if things stay as they are, prices might drop below USD 90
• The steel market is expected to stay fairly steady, with prices bobbing up and down a bit

What’s the Bottom Line?

While no one can predict exactly what will happen, here’s what we’re likely to see:

• Prices probably won’t shoot up dramatically anytime soon
• We might see them stabilise later in 2024
• Any recovery in prices will depend a lot on what China does next

What Should You Watch Out For?

Keep an eye on:

• News about China’s building industry
• Any new government spending on infrastructure
• Changes in how much iron ore is being produced worldwide

Want to Stay in the Know?

If you’re keen to keep track of metal prices, it’s worth checking trusted financial news sources or signing up for updates from industry experts. The metal market affects everything from construction costs to manufacturing prices, so staying informed can help you make better decisions for your business or investments.

Stay ahead of the scrap metal Bayswater with Dream Lucky Scrap Metal, your trusted local experts who ensure you get the best value for your materials while keeping you informed about industry shifts. Looking for regular updates about the metal market?

Pop your email in below for our weekly newsletter with all the latest news and trends.

Related Articles:

• Eighty Percent? Take a Look at WA’s Recycling Landscape
• How Much Scrap Metal Worth?
• Sustainable Concrete: SIS Plastics Pioneers Eco-Friendly Panels