The China Iron and Steel Association (CISA) has released a brief report assessing the current steel market situation in China.
The CISA states that, with weather conditions getting better, Chinese domestic steel demand will recover soon. However, considering the supply and demand situation, coupled with high steel inventory levels, there is little possibility that steel prices will rebound significantly in the near future. Meanwhile, given the slack demand in the international steel market, steel exporters are facing reduced export volumes, and this is expected to cause a deterioration in the imbalance between supply and demand in the domestic market.
At the end of February, steel inventories in the main regions of China had totaled 18.94 million mt, up 20.31 percent month on month and up 46.80 percent compared to the end of 2011.