In October this year, Chinese domestic finished steel prices continued to move on a downtrend as China's demand for finished steel failed to show any significant improvement, contributing to the downward movement seen in iron ore prices in the given month. It is expected that import iron ore prices will indicate a slight downtrend as the weather gets colder and also amid measures taken to limit steel production during the period of the Asia-Pacific Economic Cooperation (APEC) meeting in Beijing, as stated in a report issued by the China Iron and Steel Association (CISA) on November 7.
At the end of October this year, the China Iron Ore Price Index (CIOPI) stood at 283.54 points, up 1.3 points or 0.46 percent month on month. In particular, the domestic production iron ore price index stood at 265.32 points, down 4.5 points or 1.67 percent month on month, while the imported iron ore price index stood at 291.78 points, up 3.92 points or 1.36 percent month on month, indicating a rise in October following the decline recorded in September.
In October, the average China Iron Ore Price Index (CIOPI) was at 287.96 points, down 6.9 points or 2.34 percent month on month. In particular, the average domestic production iron ore price index was at 266.79 points, down 6.56 points or 2.40 percent, while the average imported iron ore price index stood at 297.53 points, down 7.07 points or 2.32 percent, both month on month.
Meanwhile, the composite steel price index (CSPI) for the Chinese domestic market was at 86.40 points at the end of October, up 0.05 points or 0.06 percent month on month, indicating a slight uptrend after six consecutive months of downward movement, while remaining below 100 points for the 13th consecutive month, and so there is still a lack of solid support from steel prices for iron ore prices. With the weather becoming colder, consumption of both steel and iron ore will decline in the off-season. Moreover, during the period of the APEC meeting, steel production in northern China will be limited to ensure good environmental conditions in Beijing, which will also contribute to the continuation of the slight downward movement of prices of imported iron ore in China in the coming period, the CISA stated in its report.