According to a new report issued by the China Iron and Steel Association (CISA), as of July 31 this year imported iron ore inventory at Chinese ports totaled 142 million mt, down 1.26 percent month on month and rising by 30.99 percent year on year.
According to the CISA, in the January-June period this year China’s pig iron output increased by 11.79 million mt, while China’s imports of iron ore rose by 45.83 million mt, both year on year, reflecting the ongoing oversupply of iron ore in the market.
As stated by the CISA, in the January-June period of the current year steelmakers which are CISA members registered an aggregate gross profit of RMB 53.2 billion ($7.9 billion). As of the end of July, import iron ore prices for China stood at $71.75/mt, up $9.34/mt or 14.97 percent month on month, while the China Steel Price Index (CSPI) indicated an increase of 5.4 percent month on month, far lower than the growth of import iron ore prices. At the same time, prices of coking coal, metallurgical coke and scrap rose by 3.13 percent, 6.62 percent and 2.36 percent month on month. Due to rises seen in raw materials prices, steelmakers will bear higher cost pressures. It is thought that iron ore prices in China are unlikely to indicate further significant upward movement in the coming period.