According to a new report issued by the China Iron and Steel Association (CISA), steel prices in China continued their decreasing trend in June amid slack demand from downstream users and the declining trends of iron ore and coking coal prices.
There are a number of factors that participants in the Chinese finished steel market should pay attention to in July, the CISA stated.
First of all, as of June 30, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 16.9486 million mt, decreasing by 17.42 percent compared to June 20.
However, the China Steel Price Index (CSPI) had decreased as of June 30, down 8.01 percent month on month, while down 14.61 percent year on year.
According to the data issued by China’s National Bureau of Statistics (NBS), China’s crude steel output amounted to 90.73 million mt in June, down 3.3 percent year on year.
Moreover, the China Iron Ore Price Index (CIOPI) decreased by 4.6 percent month on month, 0.09 percentage points faster than the declining pace recorded in May.
In July, steel prices in China are expected to continue their decreasing trend amid weak support from raw material prices and slack demand.