CISA: China’s steel prices edge down in Oct, to fluctuate in limited range in Nov

Monday, 22 November 2021 12:04:00 (GMT+3)   |   Shanghai

According to a new report issued by the China Iron and Steel Association (CISA), steel prices in China in October shifted from an upward trend to a downtrend. There are a number of factors that participants in the Chinese finished steel market should pay attention to in November and beyond, the CISA stated.

According to the data issued by China’s National Bureau of Statistics (NBS), China’s crude steel output in October amounted to 71.58 million mt, down 23.3 percent year on year, declining month on month for the sixth consecutive month, while indicating a year-on-year decrease for the fourth consecutive month. The decreased output of crude steel offset the slack demand from downstream users to some extent. But slower consumption was still impacting the market and prices significantly.

Thirdly, the China Iron Ore Price Index (CIOPI) stood at $107.19/mt as of October 30, decreasing by 8.25 percent year on year, while decreasing by 9.64 percent month on month. Though iron ore prices indicated a downtrend in the given period, coking coal, coke and scrap prices were stıll very hıgh, which exerted a negative impact on steel prices.   

It is thought that steel prices in the Chinese domestic market will likely fluctuate within a limited range in November and December as demand will slacken amid the cold winter weather.

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