According to a new report issued by the China Iron and Steel Association (CISA), as of November 30 this year, imported iron ore inventory at Chinese ports totaled 141 million mt, up 3.98 percent month on month.
According to the CISA, in the January-October period this year China’s pig iron output increased by 16.00 million mt, while China’s imports of iron ore rose by 53.06 million mt, both year on year, reflecting the ongoing oversupply of iron ore in the market.
As stated by the CISA, in the January-October period of the current year Chinese steelmakers which are CISA members registered an aggregate gross profit of RMB 134.1 billion ($20.3 billion), indicating a sharp rise compared to the same period of last year.
Currently, with production cuts being implemented in the winter season, finished steel prices have been increasing, pushing up iron ore prices. However, demand for finished steel will be slacker in the coming period, which will negatively affect iron ore prices. It is thought that iron ore prices in China are unlikely to indicate large increases in the coming period.