Iron ore prices may see a moderate correction: Hongmei Li

Price correction in iron ore is normal whenever there is a surge, of course, there will be a downward correction. Serious correction in iron ore price will depend upon how the Chinese steel prices will perform as the China’s domestic steel prices have surged to a new 3 and a half year high. Chinese traders are optimistic about the market prospect in the near term, says Hongmei Li, Senior Editor- Metal & Steel News at S&P Global Platts.

Speaking to CNBC-TV18, Hongmei Li said markets have been reacting to the policy statement made by the US and Chinese government which is having a positive impact on the metals. People are thinking that the reaction is too much and they are kind of cooling down.

Chinese GDP growth of 6.5 percent is within the expected range. People are looking at fundamentals demand and supply part and the policy measures from the US and Chinese governments whether they will be carrying out all these policies that are more important.

Investors and physical market participants are seeing whether they have been overreacting to certain news like strikes that have been going on in Chile and another strike in Peru for the copper mine.