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1. Recently iron ore import price went up continuously. Chinese bulk commodity futures refer to rebar, hot rolled coil, coke, coking coal, iron ore, ferrosilicon, silicon manganese and coal rose to the daily limit.
MPI's comments: Oversupply of the iron ore market has not been changed but expanded. In general, the iron ore price only increases for short-term and then will decline gradually. From March up to May 2016, the iron ore price will rise with fluctuation and then show a downturn in the second half.
2. According to the bulletin released by the General Administration of the Customs of the PRC, steel export in February 2016 was 8.11 million tons decreased by 1.63 million tons based on 9.74 million tons in January with 16.74% drop.
MPI's comments: Since mid-December last year, Chinese steel price increased significantly leading to shrinking of price difference between domestic and overseas steel price. Main reasons of decline of Chinese steel export can be illustrated mainly as weak demand of international steel market as well as anti-dumping investigation against Chinese steel products.
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