Influenced by declines in finished steel prices, raw material prices have softened further, creating room for more downward movement in the prices of finished steel in China. In this context, domestic steel plate prices have fallen at a faster rate in the past week. Meanwhile, steel giant Baosteel has decreased its plate prices by RMB 200/mt ($31/mt), while Sangang, Xinyu Steel, Valin Xiangtan Steel and Shougang Group have cut their plate prices by RMB 100/mt ($15/mt), thereby exerting a negative impact on the market.
On the positive side, China's central bank has decreased the deposit reserve ratio by 0.5 percent, while some steel mills such as Xinyu Steel and Nanjing Steel have reduced their plate outputs. However, it seems difficult for end-user demand to recover in the short term.
Summing up, downstream customers are still maintaining a wait-and-see stance while transaction volumes are on the low side. It is expected that the Chinese plate market will continue to trend down in the coming week, but at a slower rate.