China Commodity Price Index (CBPI) stood at 116.8 points in June, 2.1 points lower than that recorded in May, as announced by China Federation of Logistics and Purchasing (CFLP). The CBPI indicated a decline in June amid the start of the hot and rainy season, but which still remained at a relatively high level. In June, the metallurgical price index decreased to 86.9 points, down 1.9 points from May.
Wang Yongzhong, director of the International Commodities Research Unit of the Institute of World Economics and Politics, Chinese Academy of Social Sciences, stated that the slowdown in the real estate industry exerted a negative impact on iron ore prices in the global market.
However, he stated, China's steel industry has lacked the influence and bargaining power to match its consumer status due to the highly concentrated supply of upstream iron ore, even though China is the largest iron ore consuming and importing country in the world.
Mr. Wang also noted that China has taken several measures to gradually stabilize its economic development, especially policy support for the real estate industry, and so iron ore prices are expected to increase again.