During the week ending September 3, steel plate prices in the Chinese domestic market have moved in a downward direction, with moderate decreases. Average steel plate prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Influenced by the weakness of the steel futures market, traders of steel plate in China are pessimistic and are increasingly willing to give discounts as they seek to attract orders. On the mills' side, as input costs keep decreasing, steel plate prices have no support from production costs.
In August, the purchasing managers index (PMI) for the Chinese manufacturing sector stood at 49.2, its lowest level in the past nine months. Meanwhile, the PMI for the domestic steel industry fell to 39.9 in August, reflecting the difficulties facing the Chinese steel market at the current time. Meanwhile, according to market rumors, the price of petroleum in China may soon be raised by RMB 500/mt ($78/mt).
On the whole, with downstream demand still low, the Chinese steel plate market is expected to remain on its soft trend in the coming week.