Is it true that iron ore is the worst raw material in 2016?

We know that the sales of iron ore in 2015 have been bad, and the overcapacity of iron and steel has had the most direct impact on it. This year, iron ore was rated as the worst raw material in 2016, and it seems that the situation is not optimistic.

The world bank pointed out that the original price of iron ore in 2016 would fall to $42 per ton, down 25% from 2015. In contrast, the sales of other metals have not gone well, and the whole trend is spreading in the industry. But iron ore has always been the worst one of them, and it's a "top".

The price of iron ore continues to fall because of the slowdown in China's demand. At present, the price of iron ore has fallen by more than 75% at the peak of 2011. The world bank has downgraded 80% of world commodity price expectations, due to a sluggish demand for a sluggish growth in emerging markets and a slowdown in emerging market economies.

The prediction of port inventory is due to the increase of iron ore from Australia and Brazil to China's ports. Especially in December of last year, the volume of shipping increased, and China's demand was in the seasonal weak season before the Spring Festival.

Wall Street news has previously mentioned that as demand slows down, China's ports will be stacking more than 1 billion tons of iron ore. China Merchants futures analyst expects that due to the increase of low cost iron ore supply and the limited production of the steel industry during the Spring Festival holiday, the iron ore stored in Chinese ports may exceed 100 million tons before the Spring Festival holiday.

Last week Chinese Customs announced in December last year, Chinese iron ore imports rose 17%, rose to a record 96 million 270 thousand tons, growth continued in November. At that time, the Wall Street news article mentioned that the recent rebound in iron ore imports may be related to the recovery of the iron and steel industry. In December last year, the steel industry PMI data is 40.6, although still far below the line ups and downs, but sharply improved more than 37 before.

It is reported that domestic steelworks usually shrink in the Spring Festival holiday production, because the construction industry is slowing down and workers are on holiday. After the festival, more steel plants will be restored to production, boosting iron ore demand, and port stock is expected to fall.

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