In August this year, Chinese steelmakers will reduce their outputs amid environmental measures against the backdrop of the commemoration of the 70th anniversary of victory in China’s war of resistance against Japanese aggression, as announced by the China Iron and Steel Association (CISA).
As of July 31, the composite steel price index (CSPI) in China stood at 62.73 points, down 3.96 points or 5.94 percent month on month, with the lower prices negatively influencing demand for iron ore.
According to the CISA, as of July 31 this year, iron ore inventory held by 26 major Chinese steel enterprises amounted to 22.0516 million mt, down 0.09 percent month on month, while imported iron ore inventory at Chinese ports amounted to 80.68 million mt, up 2.50 percent month on month. In June this year, China’s domestic raw iron ore output increased by 9.19 percent month on month, while on year-on-year basis a decrease of 8.0 percent was seen. In the first half of this year, China’s domestic pig iron output decreased by 8.32 million mt, while iron ore imports decreased by just 3.90 million mt, both year on year, reflecting the ongoing oversupply situation in the iron ore market.
The CISA said that it is expected that iron ore prices in China will likely fluctuate on a slight downtrend in the coming period, while the planned output reductions are expected to contribute to the soft trend of iron ore prices.