According to a new report issued by the China Iron and Steel Association (CISA), due to the imbalance between demand and supply in China, iron ore prices are unlikely to continue their rising trend but will instead likely fluctuate within a limited range in the coming period.
According to the CISA, as of March 31 this year, iron ore inventory held by 34 major Chinese steel enterprises amounted to 36.0831 million mt, up 2.89 percent month on month, while imported iron ore inventory at Chinese ports totaled 99.43 million mt, up 1.26 percent month on month. In the January-February period this year, China’s pig iron output amounted to 105 million mt, down 7.93 million mt year on year, while the country’s iron ore imports amounted to 156 million mt, up 9.38 million year on year, reflecting the ongoing oversupply situation in the iron ore market.
In addition, as of March 31 this year, the composite steel price index (CSPI) in China stood at 68.87 points, up 8.83 points or 14.71 percent month on month. Due to the domestic policy of reducing steel output capacity, finished steel output in China is not expected to increase significantly in the coming period, and this will exert some negative pressure on iron ore demand, the CISA stated.