According to a new report issued by the China Iron and Steel Association (CISA), as of September 30 this year imported iron ore inventory at Chinese ports totaled 133.4 million mt, down 0.46 percent month on month and rising by 25.44 percent year on year.
According to the CISA, in the January-August period this year China’s pig iron output increased by 17 million mt, while China’s imports of iron ore rose by 44.54 million mt, both year on year, reflecting the ongoing oversupply of iron ore in the market.
As stated by the CISA, in the January-August period of the current year steelmakers which are CISA members registered an aggregate gross profit of RMB 91.9 billion ($13.9 billion), indicating a sharp rise compared to the same period of last year. As of the end of September, iron ore prices have seen decreases on monthly basis, while prices of coking coal, metallurgical coke and scrap indicated month-on-month increases, exerting a negative impact on steelmakers’ profitability. It is thought that iron ore prices in China are likely to see a downtrend in the coming period.