Iron ore prices still have room to go down in June

With the further decline in domestic steel prices, iron ore prices continued to decline in June. There is still room for downside iron ore prices in the later period.

1. China's iron ore price index continues to decline At the end of June, China's iron ore price index (CIOPI) was 424.47 points, a decrease of 27.94 points, a decrease of 6.18%, and an increase of 1.07 percentage points from the previous month. Among them, the price index of domestic iron ore was 341.23 points, a decrease of 0.78% from the previous month; the price index of imported iron ore was 458.31 points, a decrease of 7.70% from the previous period; the price index of imported iron ore was larger than that of domestic iron ore.

2. The price of domestic ore decreased slightly, and the price of imported ore decreased at the end of June. The price of domestic iron ore concentrate was 878.04 yuan per ton, a month-on-month decrease of 6.88 yuan per ton, a decrease of 0.78%; imported iron ore (powder ore) arrived ashore. The price was 123.79 US dollars / ton, the chain fell 10.32 US dollars / ton, a decrease of 7.70%. The equivalent price of *** was 894.89 yuan per ton, which was a quarter-on-quarter decrease of 74.74 yuan per ton, a decrease of 7.71%.

From each week's situation, domestic iron ore concentrate prices continued to decline in the first two weeks, picked up slightly in the third week, and fell again in the fourth week; the price of imported iron ore (concentrate) continued to decline, but the first two The weekly decline is larger, and the decline has decreased significantly in the last two weeks.

Third, the late analysis of the trend of iron ore prices by the decline in iron and steel production, iron ore supply increased, the situation in the late iron ore market oversupply situation will be more apparent, there is still room for downward prices.

1. Steel prices continued to fall, iron ore demand weakened in iron and steel production At the end of June, the comprehensive steel price index of the domestic steel association CSPI fell for four consecutive months and fell to 98.52 points, the lowest point in the second half of 2009; Steel prices continued to decline, and steel production fell. According to the statistics of the steel and iron associations, the average daily output of crude steel of member enterprises in the first half of June was 1.708 million tons, and the average national production per day was 2.127 million tons, which was 35,000 tons less than the daily output in May. The iron ore demand for iron and steel production was weakened.

2. The supply of iron ore continues to increase, and the market is still oversupplying. From January to May, the country's cumulative import of iron ore was 322 million tons, an increase of 14.43 million tons, an increase of 4.7%; domestic iron ore (ore ore) output 616 million tons, an increase of 40.91 million tons, an increase of 8.6%; at the end of June, imported iron ore port inventory was 73.11 million tons, an increase of 1.28 million tons, the third consecutive month of increase. Due to the abundant supply of iron ore market resources, the oversupply situation will continue.

3. Profits of iron and steel enterprises continue to decline, iron ore prices will continue to fall. According to the statistics of the Iron and Steel Association, from January to May, the member companies of the Iron and Steel Association realized profits of only 2.842 billion yuan, and the sales profit rate was only 0.19%. From the monthly situation, it fell for the fifth consecutive month, of which the profit in May was only 149 million yuan, a year-on-year drop of 89.38%; at the end of June, the CSPI domestic steel comprehensive price index fell 6.45% from the beginning of the year, but the CIOPI imported iron ore Stone prices have only dropped by 1.57%, which is significantly lower than the decline in steel prices. The benefits of iron and steel enterprises continued to decline, and iron ore prices still have room for decline.