Look for iron ore prices to retreat in 2017, says mining equipment and service provider Joy Global in its fiscal 2016 earnings review.

Global steel demand is slated to grow by just 0.5% next year, Joy says, putting pressure on the commodity gains made during 2016, Kallanish understands.

“Part of the rally in seaborne metallurgical coal and iron ore markets has been stronger than expected steel production during 2016. Encouraging housing and industrial production data in China have been the primary drivers behind iron ore prices rising from $41/tonne in January to the current $79/t level,” Joy says. “Given the expected supply growth of iron ore in 2017, prices are projected to trend lower over the course of 2017.”

Joy posted a fiscal 2016 profit of $13 million, down from a fiscal 2015 profit of $191.1m..