According to a new report issued by the China Iron and Steel Association (CISA), as of July 31 this year imported iron ore inventory at Chinese ports totaled 153 million mt, down 2.34 million mt or 1.50 percent month on month and rising by 7.83 percent year on year.
According to the CISA, as of July 31 this year, the composite steel price index (CSPI) was up 0.67 percent to 116.58 points compared to that recorded on June 30. As for the coming period, due to high temperatures and strict environmental protection policy the demand and supply situation in steel industry will unlikely change.
In the July 1-20 period this year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 1.9768 million mt, indicating an average aggregate daily crude steel output for all steelmakers in China of 2.4997 million mt, down 6.49 percent compared to June and resulting in slacker demand for import iron ore.
Due to the high temperatures and strict environmental protection policy in the finished steel market, the iron ore market will unlikely see significant improvement in demand. Import iron ore prices for China will likely fluctuate within a limited range in August, the CISA said.