China’s iron ore market to see strong supply, weak demand in H2; price to stay muted before picking up in Q2 – research
COMMODITIES VIEWS & ANALYSIS
China’s iron ore market to see strong supply, weak demand in H2; price to stay muted before picking up in Q2 – research
COMMODITIES VIEWS & ANALYSIS

China’s iron ore market to see strong supply, weak demand in H2; price to stay muted before picking up in Q2 – research

 

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In the second half of this year, China’s iron ore market is expected to see strong supply and weak demand, said commodity consultancy Mysteel.

Based on the seasonal trend in recent years, iron ore supply in the second half is expected to be stronger than the first half, while on the demand side, given the regional steel production restriction, the fact that July and August is a traditional off-peak season, and the production curbs in the heating season in November-December, the production of molten iron and the demand for iron ore are expected to drop significantly, it said. 

The marginal decline in demand and rebound in supply, iron ore stockpiles at ports will gradually build up, it said. 

In terms of iron ore prices, steel mills’ profits will likely become an important factor for the prices of imported imported iron ore, and in the fourth quarter, iron ore prices will likely pick up as the market focuses on next year’s macro policy and steel mills winter restocking, it said.