Falling iron ore prices a boost for steel producers

40% decline in iron ore prices will prop up steel players' profitability

Global iron ore prices have been on a continuous decline since the highs of $95 a tonne in February this year to about $56 now, primarily due to slowdown in Chinese demand. Analysts at IIFL highlight that iron ore inventory levels at Chinese ports have risen by 40 per cent over past one year and 15 per cent year-to-date in 2017. The Chinese government had directed steel producers to decrease the metal’s output in a bid to reduce pollution. Thus, while iron ore imports were 8.5 per cent higher during January-April, steel production was comparatively much lower at 4.8 per