The China Iron and Steel Association (CISA) held a news conference on October 25, at which Qu Xiuli, vice president of the CISA, stated that China’s import and export steel prices rose sharply in the January-September period this year due to the improved demand in the global market and increasing commodity prices. In the first nine months, the average steel export prices reached $1,113.6/mt, up 35.6 percent, while the average steel import prices amounted to $1,263.6/mt, up 55.4 percent year on year.
In the first nine months, raw material prices also indicated big increases: for instance, average import prices of fine iron ores stood at $171.67/mt, up 72.65 percent year on year, while average import prices of coking coal, coke and scrap rose by 57.07 percent, 56.88 percent and 36.48 percent, year on year, respectively.
According to Ms. Qu, as of July 1 this year, import iron ore prices have indicated sharp declines, fluctuating within a limited range around $120/mt and still remaining at relatively high levels. Moreover, due to the tight supply and the demand situation for coal and coke, the prices of these raw materials have indicated rapid rises, especially as of September 1 this year. The power supply limitations have resulted in reduced steel outputs. The CISA official said that the profitability of Chinese steelmakers may shrink during the remainder of the current year.