Domestic iron ore prices may rise first and then fall in May

In April, the domestic average price index of iron ores fell by 17 yuan/mt, but iron ore prices showed an upward trend overall. Due to the sharp price drop in March, domestic iron ore prices reached a low level in early April. Overseas prices rebounded from macro news, driving domestic iron ore prices up. Rising steel prices and pig iron output further pulled the prices up.
Entering May, domestic iron ore prices may rise first and then fall. In the early stage, as high operating rates of blast furnaces bring more output of pig iron, domestic ore prices may still rise. In late May, pig iron output may peak. The early accelerated production leads to significant growth in finished product output while terminal consumption may reduce. In addition, as rising raw material prices squeeze profits, steel mills may demand lower iron ore prices. Therefore, iron ore prices may fall.