Industry News

Macro risk suppression Iron ore short-term pressure

Iron ore futures 2005 contracts fell more than 5 per cent in early trading on March 19.

Zhuo Guiqiu, director of Jinrui Futures Research Institute, said the short-term iron ore fundamentals are not prominent enough. Demand-side domestic steel mills have a modest resumption of production, iron ore has restocking demand, but steel mills low profit limit replenishment strength, supply side, Vale shipments are still low, Australia's weather turned to a smooth, Australian mine shipments have recovered. Compared with the initial period of resumption of work after the festival, iron ore supply and demand tension eased, the latter focus on the recovery of domestic demand for materials on iron ore demand transmission and the pace of mine shipments, recent data show that domestic demand for wood is good, which is also an important support for the strength of rebar prices. On the macro level, the overseas market is extremely pessimistic at present, although overseas steel supply and demand has not changed in real terms, but the market there is concern about the collapse of overseas steel demand.

Zhuo Guiqiu believes that the recovery of domestic demand for materials, the fundamental trend to good, but the focus of short-term market trading to overseas, black varieties under pressure.

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