Recently, there has been a clear divergence between iron ore prices and supply and demand. While port inventories continued to accumulate to 159 million tons, the 62% iron ore index rose from 102.05 US dollars/ton on November 7 to 107.80 US dollars/ton on December 2, an increase of 5.63%. The China Institute of Mineral Resources believes that this divergence reveals the driving force behind the current market situation. Financial capital games and trade speculation are irrational factors driving the rise in iron ore prices. The rekindling of the current “false fire” in iron ore prices is the result of capital games and trade speculation. The port's continuous accumulation of inventory and continued weakness in actual demand will substantially suppress the rise in prices. Relying solely on phased hype, it is difficult to drive the price trend upward. All parties in the industry need to rationally discern, be wary of the risk that prices deviate from the actual supply and demand of the industry, and avoid blindly following suit.

Recently, there has been a clear divergence between iron ore prices and supply and demand. While port inventories continued to accumulate to 159 million tons, the 62% iron ore index rose from 102.05 US dollars/ton on November 7 to 107.80 US dollars/ton on December 2, an increase of 5.63%. The China Institute of Mineral Resources believes that this divergence reveals the driving force behind the current market situation. Financial capital games and trade speculation are irrational factors driving the rise in iron ore prices. The rekindling of the current “false fire” in iron ore prices is the result of capital games and trade speculation. The port's continuous accumulation of inventory and continued weakness in actual demand will substantially suppress the rise in prices. Relying solely on phased hype, it is difficult to drive the price trend upward. All parties in the industry need to rationally discern, be wary of the risk that prices deviate from the actual supply and demand of the industry, and avoid blindly following suit.