According to a report released by Chinese steel giant Baosteel Corporation, the Chinese domestic steel market will see further declines in prices and sales volumes in the second half of 2010.
The company also pointed out in its report that domestic steel demand as well as steel prices are already declining under the influence of the appreciation of the Chinese currency against the US dollar and the government's macroeconomic policies. Furthermore, Baosteel stated, as the traditional low season for the steel market approaches, Chinese domestic mills will come under great pressure given the strength of iron ore prices.