Global Demand Weakens, Turkey’s Iron Ore Prices Slide

Turkish iron ore prices fell more sharply than expected in the second quarter of 2024. The commodity dropped to USD 95.00, a 5.2 % decline, accounting for 1.8 % of the two-week downward trend.

China’s Demand Reduction Policy

China’s major steel producers, in response to rising energy costs and environmental regulations, have partially curtailed production capacities. This decision has slowed global demand by 3.5 %.

Surge in Supply

■Large-scale mining firms: 12 million tonnes additional production planned for 2024

■North Africa: New mine projects adding 2 million tonnes capacity

■Turkey: Domestic production rose by 1.3 million tonnes

Market Balance of Supply and Demand

■Iron ore traded at USD 95.00 fell to USD 92.00, reaching a four‑week low

■Investors abandoned expectations of a rebound to USD 100.00

■Indices show a 7 % drop in short‑ and long‑term demand forecasts

Producers’ Reactions

■Arcelik Holding CEO Ahmet Demir: "China’s production cuts have caused volatility in the global supply chain."

■BHP Billiton postponed a $3.2 billion new mine investment

Forward‑Looking Outlook

■China’s 2025 energy‑efficiency targets could lift demand by 5 %

■Turkey’s upcoming mining projects promise a 10 % increase by 2026

Caner Yılmaz: The dip in iron ore prices reflects a combination of rising supply from producer countries and China’s demand restraint, creating short‑term pressure. Yet geopolitical risks and energy price volatility keep a rebound in 2025 a plausible scenario.