According to a new report issued by the China Iron and Steel Association (CISA), as of August 31 this year imported iron ore inventory at Chinese ports totaled 134 million mt, down 5.71 percent month on month and rising by 27.31 percent year on year.
According to the CISA, in the January-July period this year China’s pig iron output increased by 14.48 million mt, while China’s imports of iron ore rose by 43.68 million mt, both year on year, reflecting the ongoing oversupply of iron ore in the market.
As stated by the CISA, in the January-July period of the current year steelmakers which are CISA members registered an aggregate gross profit of RMB 70.3 billion ($10.7 billion). As of the end of August, import iron ore prices for China had risen by 5.10 percent month on month. At the same time, prices of coking coal, metallurgical coke and scrap indicated respective month-on-month increases of 4.92 percent, 14.09 percent and 5.07 percent. Due to the increases seen in raw material prices, steelmakers will continue to face pressure from higher costs. It is thought that iron ore prices in China are unlikely to see further sharp upward movement in the coming period.