Finished steel prices in China in June edged up slightly, shifting from the downtrend seen in May, as stated by the China Iron and Steel Association (CISA).
As of June 30 this year, the China Steel Prices index (CSPI) stood at 109.19 points, up 2.3 points, increasing by 2.15 percentage points month on month.
In June, the average import iron ore price stood at $106.7/mt, down 8.72 percent month on month, weakening the support for finished steel prices.
However, compared to the end of 2022, the CSPI for June declined by 3.58 percent, while the import iron ore prices for June rose by 15.9 percent over the same period, which negatively affected steelmakers’ profitability.
In early July (July 1-10) this year, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.2404 million mt, down 0.25 percent compared to late June (June 21-30) this year, while remaining at a relatively high level.
Inventory levels at medium-sized steel enterprises in China increased in early July. As of July 10, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 15.8983 million mt, increasing by 7.56 percent compared to June 30, reflecting stronger pressure from the supply side in the given period.
As of July 14, Chinese domestic production iron ore, scrap, coking coal and metallurgical coke prices increased by 1.09 percent, 0.62 percent, 2.83 percent and 2.7 percent month on month, respectively, which bolstered steel prices from the cost side to a certain degree.
Growth in the manufacturing and construction industries has slowed down, which will exert a negative impact on demand for steel. The CISA has urged steelmakers to pay attention to the balance between supply and demand in the steel market for July.
