According to a new report issued by the China Iron and Steel Association (CISA), due to the winter heating season, production restrictions for the Winter Olympics, cold weather and repeated outbreaks of the Covid-19 pandemic in some regions, steel outputs remained at low levels, while steel prices indicated a rising trend following the Chinese New Year holiday amid good expectations.
On March 10 this year, overall domestic inventories of the five main finished steel products in 20 major cities in China totaled 14.53 million mt, down 0.15 million mt or 1.0 percent compared to February 28. As of March 10, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 16.682 million mt, rising by 581,300 mt or 3.61 percent compared to February 28.
Steel prices increased in the first two weeks of March during the traditional peak season for business, but the Covid-19 pandemic worsened in many regions of China, resulting in a lockdown in the Chinese major steelmaking hub of Tangshan, which may affect the steel market in the near future. At the same time, the strict control measures will exert a negative impact on construction activities in China, which will slacken the demand for steel, though supply will also decline. It is thought that steel prices in China may fluctuate within a limited range in the coming period.
