According to a new report issued by the China Iron and Steel Association (CISA), as of February 28 this year imported iron ore inventory at Chinese ports totaled 147 million mt, up 5.1 percent month on month, reflecting the ongoing oversupply in China’s iron ore market.
According to the CISA, as of March 1, the composite steel price index (CSPI) was up 0.84 points or 0.78 percent to 107.96 points as compared to January 31.
In the February 1-20 period this year, the average aggregate daily crude steel output for all steelmakers in China amounted to 2.4874 million mt, up 2.8 percent compared to the average for January. Furthermore, in the given period the average aggregate daily pig iron output in China totaled 2.0508 million mt, rising by 1.84 percent compared to the January average, resulting in stronger demand for import iron ore.
It will take more time to observe to what extent measures in China to promote steady economic development will stimulate downstream industries’ demand for finished steel, while Chinese steelmakers at the same time will come under pressure from rising costs and lower profits. Against this backdrop, import iron ore prices for China are unlikely to continue their increasing trend in March, but instead are expected to fluctuate within a limited range, the CISA said.