It is reported that the widely-expected iron ore market advance after the week-long holiday has yet to occur, fanning concerns whether the market would continue the pre-holiday boom or collapse inflicted by the world credit crisis. Both steel and iron ore market are struggling in dire condition at the moment, resulting in stalemate in the sector since both buyers and sellers are keeping waiting in light of the unclear future market directions, and are unwilling to break the stagnancy. Against such backdrop, Mysteel analyst Mr Liu Yan in iron ore division speculates that Chinese iron ore market would vibrate in a narrow range in recent period with cautious purchases from steel mills. The coming online ore capacity is set to weigh on the market, however, the advancing production costs will prop up market prices and allow thin space for fall. And Mr Liu lists both factoring advantageous and disadvantageous elements below for reference.
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