[SMM Express] the iron ore mine suffered a major setback and lost the 900yuan gate. Under the cover of bad luck, there may still be room for the downside.

SMM8 March 5: iron ore opened low today. As of 14:00 in the afternoon, the main iron ore contract was 884 yuan / ton, down 5.25% today. At one point, it fell to 872.5 yuan / ton in intraday trading, the lowest since the end of November last year. Prior to this, iron ore prices continued to decline in late July and recovered slightly in early August, but since last night, iron ore prices have been falling all the way, falling below the 900 yuan / ton mark.

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Iron ore fell sharply today, which SMM believes is mainly due to:

1. With the continuous progress of crude steel production reduction, most steel enterprises have indicated that they will gradually implement the reduction task, and the bad mood hangs over the market.

2. Considering the weak demand downstream of the steel terminal, some steel enterprises have planned to reduce the inventory of raw materials, which increases the pressure on the current market during the iron ore period.

From today's spot market, although the price decline in early trading is small, but as the market continues to decline, some merchants have more room for bargaining, the market wait-and-see mood is strong, and the overall transaction is not good. In the later stage, under the premise of no change in the trend of reducing production, there may still be room for the iron ore market to go down.

The black knight-errant looks at the analysis of the steel market (8000 / year)

The combination of futures and spot interprets the black market and provides operational guidance.

Brief introduction of the author: Zou Youchang, professor-level senior engineer, majoring in metal pressure processing, has been engaged in the production, technology and management of iron and steel industry chain for a long time, and has a comprehensive and profound understanding of iron and steel industry chain. deep attainments in steel rolling, solid theoretical foundation and practical experience in heat treatment; Later, he has been an executive of a state-owned iron and steel enterprise for a long time, responsible for operation and futures work, and is now the vice president of a large private enterprise group (including but not limited to iron and steel). He also worked as a black consultant for a big-name futures company. in the past decade, he has more accurate judgment of steel trend and rich successful experience in spot operation, and has been highly recognized by his peers in the industry.

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Head of iron and steel business: Lu Qingping