According to a new report issued by the China Iron and Steel Association (CISA), steel prices in March this year edged up slightly amid the slow improvement in demand from downstream users due to the negative impact of the outbreaks of the Covid-19 pandemic in many regions of China.
There are a number of factors that participants in the Chinese finished steel market should pay attention to in April, the CISA stated.
First of all, inventory levels of finished steel have decreased. As of April 10, overall domestic inventories of the five main finished steel products in 21 major cities in China totaled 13.56 million mt, down 2.04 million mt or 13.1 percent year on year, while down 1.1 percent compared to March 31.
Secondly, according to the data issued by China’s National Bureau of Statistics (NBS), China’s crude steel output amounted to 88.3 million mt in March, down 6.4 percent year on year.
Thirdly, the China Iron Ore Price Index (CIOPI) stood at $158.39/mt as of March 31, decreasing by 3.18 percent year on year, while rising by 14.53 percent month on month. Coking coal, metallurgical coke and scrap prices indicated month-on-month rises of 23.88 percent, 20.8 percent and 4.14 percent, respectively.
China aims to reduce crude steel output in 2022. Currently, the Covid-19 pandemic continues in many regions of China, which will exert a negative impact on the domestic steel market.