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 130.81 million mt, up 11.3 million mt month on month and rising by 32.62 million mt year on year.
According to the CISA, In January, China’s pig iron output amounted to 57.47 million mt, up 4.32 million mt year on year, while China’s imports of iron ore totaled 92 million mt, rising by 9.87 million mt year on year, reflecting the ongoing oversupply in the iron ore market.
The imbalance between supply and demand due to the increases in imported iron ore supply and in ore inventory levels at Chinese ports will continue to exert negative pressure on iron ore prices in the domestic market. On the other hand, infrastructure investment in China is expected to pick up, which will provide strong support for domestic finished steel prices and boost sentiment in the steel market. It is thought that iron ore prices will likely to indicate some fluctuations in the coming period, the CISA stated.