China Metallurgical News: Iron ore lacks the basis for price increases; the market should have rational expectations

Recently, influenced by the outbreak of Middle Eastern geopolitical conflicts and the domestic post-holiday resumption of work, iron ore prices have rebounded rapidly, attracting market attention. However, a deeper analysis of the current iron ore supply and demand relationship shows that the rebound lacks substantial support and does not have a foundation for sustained price increases. All market participants should remain rational and be alert to the real risks behind overly optimistic expectations. Overall, the rebound in iron ore prices at the end of February is more a result of sentiment and technical correction rather than an improvement in supply and demand fundamentals, and the upward movement lacks a supportive basis. Under the ongoing reality of oversupply, the upside potential for iron ore prices has been firmly capped. Market participants should look beyond short-term fluctuations, recognize the fundamental pattern, and approach price volatility rationally. (China Metallurgical News)