According to a new report issued by the China Iron and Steel Association (CISA), as of January 31 this year imported iron ore inventory at Chinese ports totaled 152 million mt, up 3.60 percent month on month, while up 27.04 percent year on year.
According to the CISA, as of January 31 this year, the composite steel price index (CSPI) was down 5.80 percent compared to December 31, while import iron ore prices were up 0.16 percent, and coking coal prices rose by 2.22 percent in the given period. Raw material prices did not move down following the declines in steel prices, resulting in reduced profitability for steelmakers.
Given cold weather conditions in China and the approach of the Chinese New Year holiday (February 15-21), production in the Chinese steel industry will remain at low levels, contributing to the slack demand for import iron ore. It is thought that import iron ore prices in China will continue their fluctuating trend, within a limited range, in the coming period, the CISA said.