Since February this year, iron ore prices have been on the rise.

Although the steel industry has shown signs of recovery, some of the analysists believe that this is due to the reduction of steel factories after the festive season.

ANBOUND's scholars point out that there is massive overcapacity in the steel industry, now with the steel factories resumed operations and the continuous supply of new resources, the supply font of the market will be facing a more intense pressure and in the event the demands for steel are not sufficient, this might widen the supply and demand gap.

The current increase in iron oil prices will pose challenge to the downstream steel industry in the future.