According to a report released by the China Iron and Steel Association (CISA) on August 17, since China has issued several policies to stabilize its economic development, demand for finished steel will likely indicate a certain improvement, though, with oversupply continuing, it is thought that finished steel prices in China are unlikely to rise significantly in the coming period, but instead will fluctuate within a limited range.
According to the CISA’s report, in the January-July period this year China’s crude steel output amounted to 476 million mt, down 1.8 percent year on year, while China’s apparent consumption of crude steel totaled 420 million mt, down 5.2 percent year on year. In the given period, China’s net exports of finished steel amounted to 54.43 million mt, up 34.1 percent year on year.
Meanwhile, overall domestic inventories of finished steel products in China’s main markets as of the end of July this year totaled 11.68 million mt, down1.18 million mt compared to the end of June this year and decreasing by 1.26 million mt compared to the end of July 2014.
According to the CISA, the composite steel price index (CSPI) in China as of August 16 stood at 64.74 points, indicating a slight rise compared to mid-July.