China’s iron and steel industry saw input costs continuing to fall in the first few months of 2013.

In April, the sector’s purchasing price index slumped 10.1% month on month to 32%. Most domestic steel mills began to incur losses in April and were more prudent in the procurement of raw materials, which led to a persistent decline in iron ore prices. The iron ore market will continue to be oversupplied in the coming period, said the China Federation of Logistics and Purchasing (CFLP).

Source: China Metals e-mail