The prices of raw materials for China's iron and steel industry are expected to continue falling in the rest of the year for adequate supply, said Liu Zhimei, vice secretary-general of China Chamber of Commerce of Minmetals & Chemicals Import & Export.

    Liu expressed at the 3rd China Steel Raw Materials & Fuels Summit Tuesday that supplies of coke and iron ore are not tight any more,and with falling of steel price for seven consecutive weeks, pricesof its raw materials are also under falling pressure.

    According to Liu, if China's crude steel output this year is about 540 million tons, the coke demand will be about 270 million tons. And the reality is that China is expected to produce 330 million metric tons of coke this year, approximately the same as last year. So even after taking an export quota of 14 million tons into account, the supply would still exceed the demand.

    According to statistics of the Chamber, iron ore inventories at Chinese ports are still at a record high of around 70 million tons.

    Liu suggests steel mills should do some research before making purchases of raw materials as their prices already have shown a downward trend.