CISA sees limited room for further decline of China’s steel prices

Monday, 26 October 2009 09:23:30 (GMT+3)   |  
       

The China Iron and Steel Association (CISA) has lately stated that the continuous decrease seen in domestic steel prices in September was due to the excessive release of production capacity and the increasing imbalance between supply and demand. The CISA went on to say that the future market is expected to move on a stable trend, but will still be impacted by capacity release.

According to the CISA, there is limited room for further descending movement in local steel prices on account of the shrinkage of the profit range available to the mills. The figures indicate that medium- and large-scale mills in China registered a 77.65 percent drop in their net profits for the first nine months of this year. Given the slump already registered by steel prices and the support provided by production costs, the room for downward movement in China's steel market is becoming smaller and smaller.


Similar articles

China’s HDG market sees low inventories in some regions

26 Nov | Flats and Slab

China’s medium plate market sees slight rise

25 Nov | Flats and Slab

Chinese common alloys market registers a minor rise

17 Nov | Scrap & Raw Materials

Chinese ferromolybdenum market sees price stability and weak trading

16 Nov | Scrap & Raw Materials

Chinese hot rolled market moves up on fluctuating trend

10 Nov | Flats and Slab

Fluctuations replace uptrend in Chinese medium plate market

04 Nov | Flats and Slab

Chinese hot rolled market enters fluctuating phase

03 Nov | Flats and Slab

Valin Steel to build new seamless steel pipe unit

03 Nov | Steel News

CMC reports sharp drop in Q4 income; CEO sees modest stabilization in US markets

02 Nov | Steel News

Nippon Steel posts $792 million net loss in H1 FY2009-10

29 Oct | Steel News