Prices of imported iron ore in China have continued to decline since the start of the summer, while domestic crude steel output is still at high levels amid increases in steel exports, though domestic demand for steel products has remained sluggish, according to a report issued by the China Iron and Steel Association (CISA) on July 7. It is expected that imported iron ore prices in China will fluctuate on a slight downtrend in the coming period, while supplies of imported iron ore will indicate a gradual increase.
By the end of June this year, the China Iron Ore Price Index (CIOPI) stood at 326.85 points, down 7.32 points or 2.19 percent month on month. In particular, the domestic production iron ore index stood at 286.14 points, down 20.12 points or 6.57 percent month on month, while the imported iron ore index stood at 345.28 points, down 1.52 points or 0.44 percent month on month.
The CISA stated that iron ore prices in China followed an overall downward movement in June, though the decline was smaller compared to the previous month.
Meanwhile, the composite steel price index (CSPI) for the Chinese domestic market was at 92.99 at the end of June, down 6.15 points or 6.20 percent compared to the beginning of the current year. In June, though imported iron ore prices indicated larger declines compared to finished steel prices, the CSPI has been below 100 points for nine consecutive months, declining over a longer period than iron ore prices.