Iron ore oversupplied in China – CISA

June 18, 2008

June 18th (Steel Guru) – According to Mr Luo Binsheng vice chairman of China Iron & Steel Association, Iron ore is oversupplied in China’s market by 23.45 million tonnes in the first four months while on the global stage demand and supply is generally balanced or a little toward oversupply.

Calculations based on the steel output show that iron ore consumption went up by 27.11 million tonnes in the world in the first four months with 19.2 million tonnes absorbed by China 70.82% of the additions.

He said that “We can conclude from the data that the global supply and demand market for iron ore appears in basic balance in January to April and also signs of slight oversupply, which will remain and develop in the future months.”

Given over 70% of world iron ore trade controlled by the top three ore miners, Vale, BHP Billiton and Rio Tinto, Chinese steel mills should pay high attention to the global supply and demand changes, be alert to avoid the adverse effects raised by speculation and energetically uphold the normal order of the international iron ore trading market.

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