In November this year, due to the ongoing declining trend of finished steel prices in China, domestic demand for iron ore in China remained slack. It is thought that iron ore prices will indicate downward movement in the coming period, as stated in a new report issued by the China Iron and Steel Association (CISA).
According to the CISA, as of November 30 this year, iron ore inventory held by 26 major Chinese steel enterprises amounted to 22.82 million mt, up 0.88 percent month on month, while imported iron ore inventory at Chinese ports amounted to 89.17 million mt, rising by 5.59 percent month on month. Meanwhile, in the January-October period this year China’s crude steel output amounted to 675.10 million mt, down 2.2 percent year on year, while China’s apparent consumption of crude steel totaled 591 million mt, down 5.7 percent year on year, contributing to the ongoing oversupply situation in the iron ore market.
As also indicated by the CISA, as of the end of November this year the composite steel price index (CSPI) in China stood at 56.19 points, down 26.90 points or 32.37 percent compared to the begining of the current year.