Will Iron Ore Keep Falling after Big Losses, SMM Reports

SHANGHAI, Apr. 10 (SMM) – Last week, the iron ore market largely traded in the negative territory, and will the declines be continuing to this week?

In the just-ended week, iron ore kept falling for most part of the time, except on Apr. 3 when the market advanced with steel prices as the newly-announced Xiongan New Area in Hebei sparked market speculations over steel demand.

What's Influence on Steel Market from Xiongan New Area in China? SMM Reports

"Falling steel prices in following days and high ore inventories at ports are main reasons behind the decline," SMM iron ore analyst says.

Rainy days negatively affected steel downstream purchases in China's domestic market, and this, coupled with lack of positive news, weighed down steel prices, which was also felt by iron ore market.  

Moreover, high iron ore inventories at China’s ports also contributed to the decline, and supply shortages of high-grade ore were easing.

According to SMM data, port inventories hit a new high in March, reaching 125.74 million tonnes as of March 31.

Will the declines be continuing this week?

"Price rallies are expected after overdone declines, but poor fundamentals will not support a big rally," SMM predicts.

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