According to a report released by Hebei Metallurgical Industry Association (HMIA) on January 1, China’s domestic finished steel prices will likely indicate an upward movement at the start of January, while subsequently shifting to a declining trend.
As regards the supply side, with the upward movement seen in China’s domestic finished steel market, some steelmakers in China will likely resume production in January, as stated by the HMIA. Accordingly, it is thought that domestic finished steel inventories will increase rapidly in January. However, looking at the demand side, since costs for the steel industry will increase due to the rises seen in iron ore prices, finished steel prices will likely increase in the short term, while demand for finished steel will remain slack given the approach of China’s New Year holiday. In this context, it is thought that China’s finished steel prices will likely indicate an upward movement at the start of January, while subsequently shifting to a declining trend.