Wang Xiaoqi, the vice president of the China Iron and Steel Association (CISA), has stated that in the January-October period of the current year the total supply of domestic production and imported iron ore in China exceeded real demand by 80 million mt.
According to Mr. Wang, in January-October this year China’s iron ore imports totaled 607 million mt, up 8-10 percent year on year, while its domestic iron ore production for the period amounted to 460 million mt. On the other hand, as the CISA official stated, China’s domestic steel output was only 602 million mt in the first 10 months this year, up just 2.1 percent year on year. The figures thus indicate rather sluggish steel demand and oversupply in the iron ore market.
Mr. Wang stated that the Chinese domestic steel industry will see a slight recovery in 2013, with both steel production and demand for iron ore increasing, but with iron ore supply continuing to rise at a faster rate.