International iron ore prices fell below Author：8866 Published：2014-05-28  Sources：海南中地矿业投资有限公司  Views：9

Under the dual pressures of high inventories and slowing demand from China last week, the international iron ore prices fell below 100 U.S. dollars / ton, for the first time since September 2012 fell below this mark, domestic iron ore futures contract prices last week, the whole week 1409 fallen 1.39 percent, to close at 707 yuan Zhong Pan / ton. Analysts pointed out that the current iron ore port stocks in the real estate slowdown, driven by factors such as financing the mine continued to show a continuing upward trend in the latter part of the iron ore price will constitute further worries, short-term rebound power shortfall.
From the supply side, the latest data show that China‘s iron ore imports in April was 83.39 million tons, an increase of 24.2%, a high level of historical times. This enables high port stocks, as of May 23 week, 41 major ports nationwide total of 115.35 million tons of iron ore stocks, the chain increased 610,000 tons last week.
From the demand side, China‘s real estate market slowdown, have a significant impact on steel demand, exacerbating the downward pressure on iron ore prices. According to insiders, the current ore prices continued to drop, steel procurement still take low inventories, short-cycle operation, the overall turnover of the market downturn.
Since early 2014, the iron ore market in deep bear market, far more than 2 percent decline in the prices. Looking ahead, Yongan Futures researcher Lili believes that in the current high inventories and ore diminished financing risks, maintaining bearish ideas unchanged. International ore prices fell below $ 100 / t, suggesting downside may be opened, the latter might test the $ 85 / t this psychological barrier. However, the recent deepening futures premium, plus Australia‘s Port Hedland strike, multiple factors may stimulate short-term rebound correction.

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