According to a report released by the China Iron and Steel Association (CISA) on July 22, since China has issued several policies to stabilize its economic development, demand for finished steel will likely see an improvement, though, with oversupply continuing, it is thought that finished steel prices are unlikely to indicate significant rises in the coming period, but will instead move on a stable trend with some very slight fluctuations.
According to the CISA’s report, China’s apparent consumption of finished steel amounted to 362 million mt in the January-June period this year, down 4.7 percent year on year, while China’s crude steel output in the given period totaled 410 million mt, declining by 1.3 percent year on year. Meanwhile, overall domestic inventories of the five main finished steel products in China as of the end of June this year totaled 12.86 million mt, down 0.34 percent month on month and indicating a decrease of 4.32 percent year on year.
According to the CISA, the composite steel price index (CSPI) as of July 17 fell to 62.89 points, down 24.31 percent compared to the beginning of this year, while down 31.80 percent year on year, creating difficult conditions for steelmakers. However, iron ore prices have rebounded a little, which will likely provide some support for the stability of finished steel prices in the coming period.