According to a new report issued by the China Iron and Steel Association (CISA), as of April 30 this year imported iron ore inventory at Chinese ports totaled 159 million mt, down 3.74 million mt or 2.3 percent month on month and rising by 19.32 percent year on year.
According to the CISA, as of April 30 this year, the composite steel price index (CSPI) was up 3.84 percent compared to the end of March. However, the capacity utilization rate increased quickly, resulting in rises in crude steel output, which will exert a negative impact on finished steel prices.
In the April 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 1.8949 million mt, indicating an average aggregate daily crude steel output for all steelmakers in China of 2.424 million mt, up 1.57 percent compared to March. The current season is the peak season for finished steel demand in China, and this has increased the demand for import iron ore. However, China imported 353.401 million mt of iron ore in the January-April period this year, up 0.2 percent year on year, indicating that the oversupply of import iron ore has continued. Import iron ore prices for China are unlikely to indicate continuous rises in May, the CISA said.