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• The market was impacted by evidence of low demand and abundant supply, leading to concerns among Chinese steel producers.
• Macroeconomic and property-sector data in China contributed to the decision by steel producers to implement production cuts, further dampening demand for raw materials.
• Property investment in China experienced a significant decline of 16.2% in April, while new housing prices continued to contract for the 12th consecutive month.
• Key iron ore producers such as Australia and Brazil maintained strong output, adding to the overall bearish pressure on prices.

The SGX Iron Ore Futures are currently trading below the Year’s, Quarter’s, and Month’s developing value area, resulting in a 3.4% decline for the month. This downward movement suggests a rotational scenario from previous highs, with potential core buyers expected to emerge around the decade’s lower value extreme.

From a technical perspective, the daily interval has established a balanced price range, indicating the possibility of finding buying interest near the lower extreme of this bracket.

One contributing factor to the lower iron ore prices may be the strength of the dollar in this particular month, as the US Federal Reserve continues to uphold its tightening cycle, which can impact commodity prices.

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