According to a report released by the China Iron and Steel Association (CISA), in April this year, China’s crude steel output amounted to 69.42 million mt, up 0.5 percent year on year, while China’s average aggregate daily crude steel output amounted to 2.314 million mt in the given month, hitting an all-time historical high, reflecting the ongoing oversupply situation in the domestic finished steel market.
As of the second week of May, domestic iron ore prices were at RMB 512/mt ($78.41/mt), down 1.56 percent week on week, while steel scrap prices decreased to RMB 1,416/mt ($216.85/mt), decreasing by 11.61 percent compared to the end of April, which will likely exert negative pressure on domestic finished steel prices. The CISA said that finished steel prices in China will likely fluctuate on a soft trend in the coming period.