According to a new report issued by the China Iron and Steel Association (CISA), steel prices in May shifted from rises to declines as demand did not improve as much as expected and given the decreasing trend of raw material prices.
There are a number of factors that participants in the Chinese finished steel market should pay attention to in June, the CISA stated.
First of all, as of May 31, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 17.9424 million mt, decreasing by 10.19 percent compared to May 20.
However, the China steel price index (CSPI) decreased as of May 31, down 4.88 percent month on month, while down 7.55 percent year on year.
In May, though enterprises in Shanghai started to resume production and construction, demand did not improve as quickly as market players had expected.
At the same time, according to the data issued by China’s National Bureau of Statistics (NBS), China’s crude steel output amounted to 96.61 million mt in May, up 3.5 percent year on year.
Moreover, the China Iron Ore Price Index (CIOPI) decreased by $5.28/mt month on month, though still remaining at a relatively high level.
In June, the weather will be hot, which will negatively affect demand for steel, which will result in a fluctuating trend of steel prices.