In September, Chinese domestic finished steel prices continued to move down as China's demand for finished steel remained slack, contributing to the downtrend seen in iron ore prices in the given month. It is expected that import iron ore prices will continue their slight downtrend as at the end of September imported iron ore inventory at Chinese ports remained above 100 million mt for the eighth consecutive month, totaling 110.69 million mt, and only indicating a slight decline of 1.5 percent compared to the end of August, according to a report issued by the China Iron and Steel Association (CISA) on October 15.
At the end of September this year, the China Iron Ore Price Index (CIOPI) stood at 282.24 points, down 27.28 points or 8.81 percent month on month. In particular, the domestic production iron ore price index stood at 269.82 points, down 9.6 points or 3.34 percent month on month, while the imported iron ore price index stood at 287.86 points, down 35.28 points or 10.92 percent month on month, indicating a bigger month-on-month decline than in July.
Meanwhile, the composite steel price index (CSPI) for the Chinese domestic market was at 86.35 points at the end of September, down 4.28 points or 4.72 percent month on month, declining for the sixth consecutive month, remaining below 100 points for the 12th consecutive month and at its lowest level since 2003. The softness in finished steel prices will likely result in a slight downward movement of prices of imported iron ore in China in the coming period, the CISA stated in its report.