Steel stockpiles and iron ore inventories reached record highs in the first half of February, the China Securities Journal reported, quoting data from the China Iron and Steel Association and umetal.com, an industry information website. The backlog of iron ore, a raw material for steel production, shot past the 100 million metric ton mark for the first time.
Overall weak demand and falling prices kept buyers on hold in expectation of better bargains. Seasonal factors also played a part.
Steelmakers, miners and dry bulk shippers may all have to brace for an extended tough time, with the association predicting the oversupplies to continue and steel prices to stay in check.
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