A recent article from Seeking Alpha suggested that iron ore prices could still have further to fall.
As quoted in the publication:
In April, iron ore prices jumped to above $70 a ton, a level not seen since early 2015. Iron ore prices had been on a downward trajectory since 2014 amid a slowdown in demand and oversupply in the global seaborne iron ore market.
The five-year price chart shows prices peaking in 2011 and then seeing a sharp decline from 2013 onwards. By late last year, prices were well below $40 per ton. The rebound in iron ore prices began at the start of this year. The rally lasted until mid-April.
The rally was sparked by strong demand from China. Chinese policymakers have implemented several stimulus measures since late 2014 amid concerns over a hard landing. These measures included infrastructure spending, which boosted demand for steel. Iron ore is a key steelmaking ingredient. Iron ore prices also got a boost from supply disruptions at the start of this year. But another important factor that contributed to the price rise was speculation.