According to a new report issued by the China Iron and Steel Association (CISA), as of February 28 this year imported iron ore inventory at Chinese ports totaled 159 million mt, up 5.10 percent month on month and rising by 21.98 percent year on year.
According to the CISA, as of February 28 this year, the composite steel price index (CSPI) was up 0.43 percent compared to January 31, while import iron ore prices were up 7.17 percent in the given period. Import iron ore prices rose quicker than steel prices, which will exert a negative impact on steelmakers' profitability.
Following the Chinese New Year holiday, market participants have been upbeat on the future prospects for steel prices. China's crude steel output will increase, which will result in stronger demand for import iron ore. However, oversupply of import iron ore will continue. It is thought that import iron ore prices in China will continue their fluctuating trend in the coming period, the CISA said.