In August, China's finished steel output increased slightly, while domestic finished steel prices continued to soften in the given month due to slower economic growth, with the finished steel price decreases contributing to significant declines in iron ore prices. It is expected that iron ore prices will continue their slight downtrend as ore inventory at Chinese ports still exceeds 100 million mt, with a situation of oversupply still prevailing, according to a report issued by the China Iron and Steel Association (CISA) on September 11.
At the end of August this year, the China Iron Ore Price Index (CIOPI) stood at 309.52 points, down 18.10 points or 5.52 percent month on month. In particular, the domestic production iron ore price index stood at 279.42 points, down 3.20 points or 1.13 percent month on month, while the imported iron ore price index stood at 323.14 points, down 24.84 points or 7.14 percent month on month.
Meanwhile, the composite steel price index (CSPI) for the Chinese domestic market was at 90.63 points at the end of August, down 1.25 points or 1.36 percent month on month, declining for the fifth consecutive month. The softness in finished steel prices and low profit margins of steelmakers will likely result in declines in iron ore prices in the coming period, the CISA stated in its report.
