Chinese Market Sees No End in Sight to Iron Ore Declines

SHANGHAI, Nov. 6 (SMM) – The price of domestic iron ore price in China’s market is expected to extend losses this week, Shanghai Metals Market’s ferrous branch Steelease foresees. 

“Iron ore prices in domestic market are running out of control now, as market fundamentals and costs have been proved invalid to judge its direction,” said Cristina, Steelease’s iron ore analyst. 

High inventories at ports will also cast a shadow over the already gloomy market, she said. 

Besides, Steelease’s Steel-PMI reading also indicates an unsustainable growth in new orders at steel downstream producers. This will also put additional pressure on iron ore price, she added.   

Steelease’s Steel-PMI fell 1.62 month-on-month to 48.74 after seasonal adjustment in October, and the reading below 50 indicates a contraction in business activities.  

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