On the one hand, in the context of the continuous interest rate hike by the Federal Reserve, the market liquidity is reduced, the funds available for investment in the capital market are reduced, and commodities lack upward momentum;
On the other hand, in the case that the Fed keeps raising interest rates, the dollar will continue to strengthen, which will attract more capital to buy dollars, so the impact on other commodities is still relatively large.
Therefore, in the context of the continued strength of the US dollar, it is expected that the prices of some commodities, including iron ore and oil, may fall in the future.
In addition, as far as the China market is concerned, there are many negative factors in the iron ore market at present, such as the China steel market entering the off-season.
Therefore, it is expected that the market demand for steel will decrease in the next few months.
At present, the profit margins of major steel mills are relatively small, and even some steel mills are at a loss. In the context of slowing market demand, many steel mills may reduce their production capacity in the future, so the demand for iron ore will decrease, and the corresponding iron ore price may fall.
Against the background of China's slow demand for iron ore, in fact, the international iron ore price has dropped significantly recently. At present, Platts 62 iron ore index has dropped from about 160 to about 130 at present, and it is expected to drop further in the future.