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 not expected to increase significantly but instead will likely fluctuate within a limited range in the coming period.
According to the CISA, as of April 30 this year, iron ore inventory held by 34 major Chinese steel enterprises amounted to 38.29 million mt, up 6.12 percent month on month, while imported iron ore inventory at Chinese ports totaled 100.08 million mt, up 3.91 percent month on month. In the January-March period this year, China’s pig iron output amounted to 166 million mt, down 7.10 million mt year on year, while the country’s iron ore imports amounted to 242 million mt, up 14.72 million year on year, reflecting the ongoing oversupply situation in the iron ore market.
In addition, as of April 30 this year, the composite steel price index (CSPI) in China stood at 84.66 points, up 15.79 points or 22.93 percent month on month. Finished steel prices in China are not expected to increase significantly and this will exert some negative pressure on iron ore demand. It is thought that iron ore prices will likely fluctuate within a limited range in the coming period.