According to a new report issued by the China Iron and Steel Association (CISA), as of August 31 this year imported iron ore inventory at Chinese ports totaled 147 million mt, down 6.12 million mt or 3.99 percent month on month and rising by 9.79 percent year on year.
According to the CISA, as of August 31 this year, the composite steel price index (CSPI) was down 0.81 percent to 121.99 points compared to August 24. As for the coming period, due to China's strict environmental protection policy, demand for import iron ore will likely slacken. However, since September and October are regarded as the traditional peak season for the steel industry, import iron ore prices will likely gain some support.
In the August 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 1.9291 million mt, with the average aggregate daily crude steel output for all steelmakers in China amounting to 2.1246 million mt, down 2.45 percent compared to July and resulting in slacker demand for import iron ore.
Due to the strict environmental protection measures in the finished steel sector and the traditional peak season for finished steel, demand in the iron ore market will face both positive and negative pressures. Import iron ore prices for China will likely fluctuate within a limited range in September, the CISA said.