CISA to hold meeting to stabilize domestic market
According to reports from China, the China Iron & Steel Association (CISA) will hold a meeting on October 21, 2005, in an effort to stabilize China's domestic steel market, which has been following a downward trend while the international prices have recently been on the rebound. Recent statistics indicate that flat steel prices in the international market have rebounded strongly, especially in the US, due to high energy costs as well as the effect of hurricanes Katrina and Rita. However, domestic prices of flat steel products in China have declined 30-40 percent, causing local producers to suffer huge losses. The fact that these prices levels have fallen below average manufacturing costs has China's steel industry greatly concerned. Accordingly, the main topics in the CISA meeting will cover: research of the supply and demand situation in China in 2005, analysis of the reasons for large price changes in China, and review of steel producers' fourth quarter production levels.