According to a new report issued by the China Iron and Steel Association (CISA), as of April 30 this year, imported iron ore inventory at Chinese ports totaled 133.33 million mt, down 1.23 million mt month on month and rising by 33.22 percent year on year.
According to the CISA, in the January-March period of the current year, China’s pig iron output increased by 6.93 million mt year on year, while China’s imports of iron ore rose by 29.5 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 iron ore inventory levels at Chinese ports will continue to exerting negative pressure on iron ore prices in the domestic market, the CISA noted. Meanwhile, steel production restrictions for the One Belt One Road Forum in Beijing in mid-May and the shutdown of all substandard steel production in China before June 30 will limit steel production and thereby negatively impact iron ore prices. It is thought that iron ore prices will likely move down further in the coming period, the CISA stated.