The ferrous market fluctuated in the past week. Today, the fluctuation continued. The expectations of China’s meeting swang today, causing the prices to swing too.The fundamentals of ferrous metals haven’t changed. As the steel product inventory is at low levels now, any destocking could drive prices to rebound. The port inventory of iron ore is high, but the decline of weekly shipment or any phenomenal shortage could drive iron ore prices up.
The spot iron ore followed the futures market, experiencing rises and falls. But due to the restocking before the Chinese New Year, iron ore prices exhibited significant elasticity.
The iron ore futures market strengthened today, with prices initially rising in the morning due to lower-than-expected shipments and continued substantial destocking of steel products. Later, the market received pessimistic news about the China meeting, prices fluctuated. From an hourly chart perspective, the Rmb800/ton support level proved strong. As the meeting results announced after the market were better than expectations, we expect the prices could continue with their upward trend.
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