In September this year, due to the ongoing declining trend of China’s finished steel prices, domestic demand for iron ore weakened and iron ore inventory at Chinese ports continued to rise. It is thought that iron ore prices will indicate slight fluctuations in the coming period, as stated in a new report issued by the China Iron and Steel Association (CISA).
According to the CISA, as of September 30 this year, iron ore inventory held by 26 major Chinese steel enterprises amounted to 23.86 million mt, up 3.93 percent month on month, while imported iron ore inventory at Chinese ports amounted to 85.52 million mt, rising by 6.12 percent month on month. In the January-August period of current year, China’s domestic pig iron output decreased by 15.37 million mt, while iron ore imports declined by just 1.20 million mt, both year on year, reflecting the ongoing oversupply situation in the iron ore market.
As also indicated by the CISA, in the January-August period of the current year, CISA member steel enterprises recorded an overall net loss of RMB 18.032 billion ($2.85 billion), shifting from the net profit recorded in the same period last year. In addition, the composite steel price index (CSPI) in China has declined for six consecutive weeks since the third week of August. It is thought that iron ore prices will likely just indicate slight fluctuations in the coming period.