Recent iron ore prices continue downward Author：8866 Published：2014-05-28  Sources：海南中地矿业投资有限公司  Views：9

This year, the imported iron ore prices have decline in the second round. March 10 imported iron ore prices have dropped to 104.7 U.S. dollars / ton, a decrease of 22% compared to the beginning, after a slight rebound. In mid-April, imported iron ore prices fell again, May 20 fell to $ 97.2 quote / ton, the lowest since September 2012. 
Imported iron ore prices are mainly due to weak downstream demand and supply imbalance affected. On the one hand, since 2003, major foreign mining companies to increase investment, production capacity continues to expand, new mines have started production in 2014 could increase global net 130 million tons of iron ore, the total production capacity has reached 1.5 billion tons or more (excluding China ). On the other hand, the global economic downturn, especially the rapid growth of China‘s steel demand phase is over, the demand for iron ore from the rapid growth of the past gradually turned 3% -4% annually slow growth. January to April, China‘s pig iron output 239.44 million tons, an increase of only 0.2%, of which 4 per month 60.18 million tons, down 0.8%. At the same time, China‘s iron ore imports this year, a significant increase in January-April total imports of iron ore and concentrates 305.34 million tons, an increase of 20.7% iron ore port stocks rising, increasing inventory levels, but also inhibited ore price rise. 
Iron ore shipments have obvious seasonal characteristics, two shipments in the third quarter is generally at a high level throughout the year, taking into account several major mining companies release new capacity is expected within the next 2-3 months hair iron The steady increase in volume, the port inventory will remain high longer period of time, easing supply environment will continue, in the case of slow growth in steel demand, it is difficult ore price rise. Overall, iron ore prices continued downward on China‘s steel industry is beneficial. In addition, the decline in imports of iron ore prices put pressure on the domestic mining enterprises. According to statistics, in 2013 the world‘s iron ore at an average cost $ 54.7 / ton, while domestic mining costs at $ 75-145 / t, Rio Tinto, BHP more than two times Billiton, CVRD and other major foreign mining companies costs. 

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