In recent weeks, the iron ore market has experienced a significant shift, with prices showing a clear downward trend. According to the latest data from the China Iron and Steel Association, the China Iron Ore Price Index (CIOPI) fell to 474.69 points at the end of March, marking a decline of 21.97 points or 4.42% compared to the previous month. This drop reflects growing concerns over supply and demand dynamics in the steel industry.
The association noted that the sluggish start to steel demand in March, combined with a surge in crude steel production and rising inventory levels, led to five consecutive weeks of falling steel prices. As a result, steel production has started to slow down, and this decline has also impacted the demand for iron ore. The once-rising iron ore prices have now turned into a declining trend, with expectations of continued oversupply in both the steel and raw material markets.
At the end of March, the domestic iron ore concentrate price stood at 937.00 yuan per ton, a decrease of 50.44 yuan or 5.11% on a monthly basis. Meanwhile, the landed price of imported iron ore (fine ore) was 140.35 USD per ton, down by 10.44 USD from the previous month. These price drops signal a weakening market sentiment.
The CSPI domestic steel comprehensive price index also dropped to 107.05 points at the end of March, reflecting a 3.66% decline from the previous month and an 11.66% drop compared to the same period last year. According to statistics from the China Iron and Steel Association, the average daily output of crude steel among major and medium-sized steel enterprises in mid-March fell to 1,651,900 tons, a decrease of 83,300 tons or 4.80% from the average level in January and February.
Moreover, according to MySteel Network, iron ore port inventories continued to rise last week, reaching 67.96 million tons across 30 major ports nationwide—an increase of 40,000 tons compared to the previous week. While downstream demand is gradually improving and finished product inventories have fallen for two consecutive weeks, these factors are seen as positive signs for market recovery.
However, steel mills continue to face losses, and until steel prices enter a real upward trend, the pressure on raw material prices and low inventory operations will remain key strategies for the market. As a result, the short-term iron ore market is still struggling to recover, which may dampen spot trading activity at ports. It is expected that this week’s iron ore port inventories could see a noticeable reduction.
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