Chinese semi finished steel prices being stable

Thursday, 29 June 2006 10:10:17 (GMT+3)   |  
       

SteelOrbis Shanghai Experiencing a massive decline in the previous two weeks, Chinese semi finished steel prices were stable over the past week with sluggish commercial activity. By the end of the trading on June 28, the common carbon billet price in Tangshan, Hebei Province is down RMB 20/mt ($3)to RMB 2'880/mt ($ 360), that of 20MnSi is down RMB 50/mt ($6) to RMB 3'000/mt ($ 375). The slab price in Tangshan is up RMB 100/mt ($13) to RMB 3'500/mt ($438). Influenced by the negative news such as export restrictions, unsmooth domestic selling and macro-control measures, Chinese semi finished steel prices saw considerable decrease during the consecutive two weeks, with the market full of panic atmosphere. But the market became stable from the beginning of the past week. Prices in leading markets are quite stable. The common carbon billet in Tangshan even rebounded from RMB 2850/mt ($356) to RMB 2880/mt ($360). However, the stable situation for the past week will not last long. The overall downward trend for Chinese steel market does not change. With the coming of light season for steel products plus the effect of macro-control measures, the demand growth is likely to go sharply down. Without the relief in crude steel capacity releasing, the future market faces with great pressure. According to the information from some rolling mills, since the finished steel market is in the downward trend, the market players are holding a “wait-and-see” attitude towards the market and are unwilling to make purchase. Therefore, the domestic semi finished steel prices will remain stable in short term, while in the future following the downward trend of finished steel prices, the semis prices will see continuous decrease.

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