CISA: Iron ore prices likely to soften in April

Monday, 08 April 2019 13:03:22 (GMT+3)   |   Shanghai
       

According to a new report issued by the China Iron and Steel Association (CISA), as of March 31 this year imported iron ore inventory at Chinese ports totaled 147 million mt, up 0.11 percent month on month and reaching the highest level in the past seven months, reflecting the ongoing oversupply situation in China’s iron ore market.

According to the CISA, as of March 31, the composite steel price index (CSPI) was up 0.94 percent year on year.

In the March 1-20 period this year, the average aggregate daily crude steel output for all steelmakers in China totaled an estimated 2.4268 million mt, down 4.28 percent compared to the average level in the January-February period of the year. However, the average aggregate daily pig iron output in China in the March 1-20 period amounted to an estimated 1.9842 million mt, down 7.52 percent compared to the average level in the January-February period, resulting in weaker demand for import iron ore.

The Vale dam collapse in Brazil in late January and the hurricane hitting Australia in mid-March have exerted a negative impact on import iron ore supply, though the effect has been overestimated by participants in steel market. Meanwhile, China’s GDP growth target has been set at 6.0-6.5 percent in 2019, down from 6.7 percent in 2018, which will negatively affect demand for finished steel. It is thought that import iron ore prices in the Chinese market will likely soften in April, the CISA said.

 


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