The China Iron and Steel Association (CISA) has stated that the current round of rise in iron ore prices has lacked fundamental support from the demand and supply. The shrinking demand, oversupply and high inventories are the most notable features of the iron ore market this year.
The current round of increase in finished steel prices have been due to the spontaneous reduction in supply and certain correction following previous continuous declines because of the shift in national production standard of rebar and wire rod.
Against the background of declining finished steel output, the increases in iron ore prices might not continue.
