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Moody’s revises global steel and mining industry outlook to positive amid risi

According to Moody’s, although the currently high prices for iron ore are not sustainable, market fundamentals remain strong for 2021 due to supply constraints and a lack of major expansion projects in the coming years. High prices will support strong cash flow for the major producers, some of which will post all-time high cash flow and EBITDA.

According to the agency’s statement, coal producers’ cash flow and earnings will improve significantly this year, though prices will ease off and the post-coronavirus bump in demand will decrease later in 2021. Demand for thermal coal and metallurgical coal, which are used in steel production, will pick up. Thermal coal demand will increase by more than three percent in 2021, after falling by more than five percent in 2020.