Into The Chinese Port Of Qingdao Ore Carriers Editorial Photo

Chinese steel mills to the inventory to make iron ore import demand, prices have fallen sharply As the domestic steel destocking accelerated sharply in import demand, the recent international iron ore price drop, May 20, at a grade of 62% of Australia's iron ore is a record $ 123 per tonne for the year lows. Industry analysts believe that iron ore prices fell while lowering steel procurement costs, but also makes the cost of steel lost support in the current weak steel market situation, the profitability of the industry little help. According to Platts reported this week, a grade of 62% iron ore in Australia offer fell to the lowest since May 5 for $ 123 / ton. Last month, the grade iron ore prices declined by 12.5%. From the third quarter of last year, the international iron ore price on the way back up to February this year, a high of nearly $ 160 per ton, steel prices this shouting too much. The production capacity of the steel industry in China hit record highs, still have not seen improvement in demand, steel prices continued to fall in the context of global seaborne iron ore imports accounted for 60% of the Chinese steel mills will decline years after purchase, and then lead ore price weakness operation. Nearly two weeks since the Chinese steel enterprises serious outbreak of bearish sentiment, traders said the mill will be part of the iron ore cargo back frequently tout market, reduce inventory to reduce costs. Although ore prices falling, but before April monthly decline in steel mills profit or difficult real good. Analysts said the rebound in steel ore price drop means that the cost of supporting efforts to further weaken, and most mills ore prices continue to put high prices will continue to accelerate the consumption of pre-inventory-based, crude steel production in the short term will thus remain high . Ore prices fall, profits for steel mills, the impact is uncertain. Negative factors currently heavier domestic steel market, high inventory, high yield has not been reversed, may not be so profitable mills better. My steel net research Director of the Centre had Jiesheng told reporters. Data show that since May, CISA CSPI steel index continued to decline slightly, to May 17 the week for five consecutive weeks, decreased from last year, the lowest since October