Latest statistics from the General Administration of Customs showed that the CIF price of iron ore imports stood at US$175.54/t, down US$0.38 or 0.22% from September, which was also the first month-on-month decline since April 2011.

Data from the CISA also revealed that spot prices of iron ore imports and domestic iron powder tumbled 14.14% and 19.77% respectively, a much steeper fall if compared to that of steel prices.

Steel mills were still embracing production reduction, but crude steel output in mid and late November would be likely to rebound as the small-and-medium-sized steel mills started to resume their production after overhauling facilities. Given the decreasing supply and macroeconomic fine-tuning, steel prices in the short term would fluctuate on an upward path.

In a related development, prices of iron ore imports continued to slide in November, but they were not so significant as those in October; moreover, they somehow started to show signs of recovery recently.

Source: China Metals e-mail