Metal Prices in Australia: What’s Happening in 2024?

In 2024, metal prices in Australia have been all over the place, impacted by changes in global demand, supply chain issues, and weather. We’ve got the answers if you’ve been wondering why prices for materials like iron ore, coal, or base metals fluctuate.

Here’s a breakdown of what’s going on and what might happen next.

Current Metal Price Trends

Iron Ore

Iron ore, one of Australia’s biggest exports, has seen a major price drop this year—down about 35% since January. Currently, prices are around USD 90 per tonne, and experts predict they could average USD 92 per tonne in 2024.

This drop is due to several reasons:

• China’s Slowing Demand: China is Australia’s biggest iron ore buyer, and its struggling property market has led to less steel production. With fewer construction projects, there’s less need for iron ore, and stockpiles are growing.
• Global Supply Increase: Other countries have ramped their iron ore production, creating more competition and pushing prices down further.

Metallurgical Coal

Metallurgical coal, used for making steel, is another key export that’s facing challenges. Australia’s forecast for coal exports has been reduced by 6.4% for 2024-25, with production now expected to reach 161 million metric tons.

What’s Behind This?

Operational issues at several Australian mines have cut supply. However, demand from India and Japan has remained steady, providing some support for prices.

Base Metals

Base metals like copper and aluminium are also feeling the heat, with prices swinging due to economic uncertainties and tighter mining regulations. These metals are essential for everything from construction to electronics, so any changes in supply or demand have a big ripple effect.

Why Are Prices Changing?

There’s no single reason why metal prices are fluctuating; it’s a mix of factors:

1. China’s Economy
   China’s economy has hit a rough patch, especially in construction. With fewer new buildings going up, the demand for steel and the materials used to make it—like iron ore and coal—has dropped.
2. More Competition
   Other countries have stepped up their production of metals, flooding the market. With more supply and not enough demand, prices have been forced down.
3. Geopolitical Tensions
   Ongoing global issues, like tensions in the Middle East, have made metal markets more unpredictable. These disruptions can affect supply chains and cause sudden price spikes or drops.
4. Weather Conditions
   In Australia, extreme weather like flooding from La Niña events can disrupt mining operations, making it harder to meet production targets and adding to price volatility.

What’s Next for Metal Prices?

While 2024 has been a tough year for the metal market, there’s hope that things could improve:

Iron Ore

If China starts investing more in infrastructure projects, steel demand could pick up again. This could push iron ore prices back up to USD 100-110 per tonne by the end of the year.

However, if China’s economy doesn’t recover, prices might stay low or even drop further.

Metallurgical Coal

Although there are short-term challenges, long-term demand from countries like India is expected to keep this market stable.

Base Metals

Prices might remain unpredictable as economic and regulatory factors continue to influence supply and demand.

What Does This Mean for You?

For everyday Australians, fluctuating metal prices can have a knock-on effect. Whether it’s higher costs for building materials or delays in infrastructure projects, these trends touch many aspects of daily life.

Stay Updated

If you’re interested in keeping track of metal prices, check reliable sources like the Australian Bureau of Statistics or industry websites like Perth Mint and SteelOrbis. Staying informed about scrap metal prices Perth with Dream Lucky Scrap Metal can help you plan smarter, whether you’re in construction, manufacturing, or just keeping an eye on the market.

As metal prices change constantly, staying on top of the trends can help you make better decisions—whether you’re building, investing, or planning. For up-to-date information, contact us for scrap metal prices and get the insights you need to stay informed.