CISA Forecasts Drop in China’s Iron Ore Prices in February

Platts reported that the China Iron & Steel Association (CISA) believes prices for imported iron ore will fall in February due to oversupply and a drop in demand.

As quoted in the market news:

China’s daily crude steel output among CISA’s steel mill members had declined in January — 1.72 million mt for the first 20 days of January, or down 1.6% or 27,500/mt month on month, CISA noted.

Procurement officials in some of the steel mills in north China’s Hebei province said that a number of blast furnaces at their mills had completed or would undergo major maintenance for 30-60 days starting late January.

CISA stated in a report:

China’s crude steel output will probably decline further in February when the Chinese New Year holiday comes — this will dampen demand for iron ore, and together with persistent oversupply, iron ore prices will decline moderately too.

Click here for the full Platts report