According to a new report issued by the China Iron and Steel Association (CISA), as of June 30 this year imported iron ore inventory at Chinese ports totaled 156 million mt, down 4.61 million mt or 2.87 percent month on month and rising by 8.09 percent year on year.
According to the CISA, as of June 30 this year, the composite steel price index (CSPI) was down 1.28 percent compared to that recorded on June 15. As for the coming period, due to high temperatures and the rainy season the steel industry will face a situation of oversupply.
In the June 1-20 period this year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 1.99 million mt, indicating an average aggregate daily crude steel output for all steelmakers in China of 2.5337 million mt, down 3.18 percent compared to May and resulting in slacker demand for import iron ore.
Due to the oversupply situation in the finished steel market, the iron ore market will also likely see oversupply. Import iron ore prices for China will likely fluctuate within a limited range in July, the CISA said.