Finished steel prices in China edged down in June due to the traditional off-season for business, as stated by the China Iron and Steel Association (CISA).
As of June 30 this year, the China Steel Prices index (CSPI) stood at 89.51 points, down 1.29 points or 1.42 percent month on month, while down 13.45 points or 13.06 percent year on year.
In the first six months this year, crude steel output in China totaled 514.83 million mt, down 3.0 percent year on year. In the January-June period, China’s apparent consumption of crude steel amounted to 451.67 million mt, down 5.5 percent year on year, with the decline in crude steel output being slower than the decrease in apparent consumption of steel.
In July, the Chinese government urged the curbing of excessive competition in the steel sector, resulting in the improvement of market sentiments and exerting a positive impact on steel prices. Thereby, finished steel prices have rebounded in July. However, there are several typhoons going to affect China, which will slacken the demand for steel and weaken the support for steel prices. CISA has urged steelmakers to control production outputs and try to stabilize steel prices.