According to a new report issued by the China Iron and Steel Association (CISA), amid oversupply in the iron ore market and the traditional off-season in China in the summer, it is thought that iron ore prices will likely just indicate some slight fluctuations in the coming period.
According to the CISA, as of May 31 this year, iron ore inventory held by major Chinese steel enterprises amounted to 41.00 million mt, down 0.11 percent month on month, while imported iron ore inventory at Chinese ports totaled 101.86 million mt, up 1.78 million mt month on month. In the January-April period this year, China’s pig iron output amounted to 225 million mt, down 8.64 million mt year on year, while the country’s iron ore imports amounted to 325 million mt, up 18.58 million year on year, reflecting the ongoing oversupply situation in the iron ore market.
In addition, as of May 31 this year, the composite steel price index (CSPI) in China stood at 69.97 points, down 14.69 points or 17.35 percent month on month. Finished steel prices are characterized by a soft trend due to slack demand amid the traditional off-season in China and this will exert some negative pressure on the iron ore market. In this overall context, it is thought that iron ore prices will likely just indicate some slight fluctuations in the coming period.