Bloomberg reported that Iron ore will fall another 8% in the next several months as steel mills in China, the biggest importer, shut down because of maintenance, power rationing and squeezed profits.

Analysts led by Xiao Fu and Daniel Brebner said that prices may fall about USD 10 a dry metric ton in the next couple of months. Ore with 62% iron content at the port of Tianjin, a global benchmark, tumbled 22% to USD 123.60 per tonne from a 16 month high on February 20.

Deutsche Bank said that steel prices that have been pressuring Chinese mills are stabilizing as facilities shut down due to power shortages in Hebei province and more will close for routine maintenance and to draw down surplus steel inventories. Iron ore rose yesterday for the first time in nine sessions as an Australian cargo topped expectations.

It said that there remains some life in the market yet despite the operating pressures facing Chinese steel mills. We expect that more shutdowns will occur over the near-term, ostensibly for refurbishment. However we believe that the market needs to be rebalanced and excess steel drawn down from inventory.