Jaway Stainless Steel

Chinese iron ore index to be released soon - CISA

Xinhua reported that the China Iron and Steel Association will release its iron ore index at a proper time this year and a move that is intended to better reflect market conditions.

Mr Zhu Jimin chairman of the association said the first draft of a document that details the methods used to compile the index has been finished and acknowledged by relevant authorities. He said that "The index will be introduced at a proper time this year after adjustments."

He added that the index will consist of two sub indices reflecting domestic iron ore prices and import prices, adding the index will be released on a weekly basis.

Mr Zhu Jimin said the steel industry maintained relatively fast development in the first half of this year with steel output reaching 350 million tonnes up by 9.6%YoY. Full year output is expected to hit 706 million tonnes.

He said that however, the industry sales profit ratio reached just 3.14% in the first half of this year down by 0.4 percentage points YoY because of soaring import prices for iron ore. He added that China steel firms paid CNY 104.1 billion for imports of iron ore in the first half.

He said China steel companies will face bigger difficulties in the second half of this year than in the first half.

Mr Zhu Jimin said output growth in the second half will slow down as domestic and international demand for steel is predicted to weaken. China steel companies will face a tightened flow of capital and higher material costs.