Cocoa Tops Global Commodities Rally for 2nd Year, Steel Ingredients Struggle on China Demand

Spare capacity in the Organization of the Petroleum Exporting Countries (OPEC) reached an unprecedented 5 million barrels per day (bpd), analysts estimated, with the group having extended production cuts to March.

“The bleak inventory path next year suggests that OPEC+ will be challenged to bring back barrels into the market,” Harry Tchilinguirian, head of research at Onyx Capital Group, said in a note.

Iron ore prices in China recouped some losses in recent months but are still headed for a 15% decline in 2024. Prices could fall again next year as iron ore supply grows and Chinese steel demand falls, analysts said, despite Beijing’s stimulus measures.

“We expect the increase in iron ore supply from major miners will be higher than that in 2024, but steel output in China will likely slide,” Pei Hao, senior analyst at brokerage Freight Investor Services, said, forecasting an average price of $100 a ton in 2025, down from an average of $110 in 2024.