CISA: Iron ore prices unlikely to continue rising trend in January

Monday, 07 January 2019 14:55:28 (GMT+3)   |   Shanghai

According to a new report issued by the China Iron and Steel Association (CISA), as of December 31 last year imported iron ore inventory at Chinese ports totaled 142 million mt, up 1.21 million mt or 0.86 percent month on month. Meanwhile, in the January-November period of 2018, China imported 978 million mt of iron ore, remaining almost stable year on year. The overall oversupply situation in China’s iron ore market has not seen any big changes.

According to the CISA, as of December 31 last year, the composite steel price index (CSPI) was up 0.73 points, rising by 0.69 percent to 107.12 points compared to November 30.

In the December 1-20 period last year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 1.8623 million mt, with the average aggregate daily crude steel output for all steelmakers in China amounting to 2.3885 million mt, down 7.69 percent compared to the month of November. However, the average aggregate daily pig iron output in China for the given period amounted to 1.9818 million mt, down 6.7 percent compared to November, resulting in slacker demand for import iron ore.

Due to the winter season and given the approach of the Chinese New Year holiday (February 2-10), demand for import iron ore will slacken further amid the anticipated reduced crude steel output. It is expected that import iron ore prices for China are unlikely to continue their rising trend in January due to the overall oversupply situation, but will fluctuate within a limited range, the CISA said.

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