According to a new report issued by the China Iron and Steel Association (CISA), amid oversupply in the iron ore market and the environmental protection in China, it is thought that iron ore prices will likely indicate some fluctuations in the coming period.
According to the CISA, as of July 31 this year, iron ore inventory held by major Chinese steel enterprises amounted to 42.48 million mt, up 2.68 percent month on month, while imported iron ore inventory at Chinese ports totaled 108.64 million mt, rising by 5.96 million mt month on month and by 27.96 million mt year on year.
Entering the month of August, China has stepped up its implementation of production restrictions in order to ensure better environmental conditions for the Tangshan International Horticulture Exposition (April 29-October 16) and the 2016 G20 Hangzhou summit (September 4-5), resulting in some decreases in the outputs of domestic steel enterprises. Due to the imbalance between supply and demand in iron ore market, it is thought that iron ore prices will likely indicate some fluctuations in the coming period.