According to a report issued by the China Iron and Steel Association (CISA) on June 6, the China's imported iron ore volume has seen a significant increase this year as domestic crude steel output has continued to grow. Due to sluggish demand from downstream industries, it is expected that Chinese crude steel output will increase at a slower rate in the coming period, negatively impacting demand for iron ore.
By the end of May this year, the China Iron Ore Price Index (CIOPI) stood at 334.17 points, down 41.10 points or 10.95 percent month on month. In particular, the domestic production iron ore index stood at 306.26 points, down 18.20 points or 5.61 percent month on month, while the imported iron ore index stood at 346.80 points, down 49.13 points or 12.41 percent month on month.
Meanwhile, the composite steel price index (CSPI) for the Chinese domestic market was at 94.27 at the end of May, after a sixth consecutive week of decline, falling to its lowest level in the current year and down 4.91 percent compared to the end of 2013.
In May, though imported iron ore prices saw larger declines than finished steel prices, while the CSPI has been below 100 points for eight consecutive months, thus declining for a longer period than iron ore prices.
The CISA concluded by stating that it expects iron ore prices to continue their downward movement in the coming period.