CISA: China’s finished steel prices to see minor downward fluctuations

Tuesday, 16 June 2015 12:07:47 (GMT+3)   |   Shanghai
       

According to a report released by the China Iron and Steel Association (CISA) on June 16, in the January-May period of this year the main domestic steel consuming industries have seen declines in growth, while no significant improvement has been observed in demand for steel.

According to the CISA's report, China's apparent consumption of finished steel amounted to 301 million mt in the January-May period this year, down 5.1 percent year on year, while China's crude steel output in the given period totaled 340 million mt, declining by 1.6 percent year on year, with the declines in demand bigger than the decreases in output.

Meanwhile, overall domestic inventories of the five main finished steel products in China as of the end of May totaled 12.90 million mt, down 5.51 percent month on month and indicating a decrease of 9.41 percent year on year. As of June 12, inventory levels had dropped further to 12.77 million mt, with the declines in inventory reflecting the lack of confidence in the future prospects for the market.

According to the CISA, considering that iron ore prices have indicated a rebound, finished steel prices, which have been declining, will likely gain support from the cost side. However, demand for finished steel will remain sluggish due to rainy weather and high temperatures, which will drag down steel prices, and thereby also impact iron ore prices negatively. The CISA stated that domestic finished prices will indicate minor downward fluctuations in the coming period.


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

Iron ore prices drop by over $9//mt week on week, mood remains bad

28 Mar | Scrap & Raw Materials

Goa government to ease policy for liquidating iron ore dumps lying on private land

28 Mar | Steel News

Ex-Brazil BPI exporters achieve slight rise in latest deals to US amid better scrap sentiment

28 Mar | Scrap & Raw Materials

Global DRI output up 7.6 percent in February

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

MOC: Average steel prices in China down slightly during Mar 18-24

28 Mar | Steel News