In the given week, activity levels in the Chinese steel plate market have remained slack, with some traders reluctant to conclude deals. Due to the narrowing of profit margins, steel mills may reduce their production volumes in the coming period to order to prevent further price decreases. However, not all mills are inclined to cut production in what traditionally has been the peak season for business.
The Chinese central bank has decided to cut the deposit reserve requirement ratio by 0.5 percentage points from May 18 this year in order to improve liquidity and boost economic growth, and this has provided some grounds for hope in the steel plate market. However, considering high output rates in the previous week and ongoing moderate demand from end-users, the move by the Chinese central bank may not cause a significantly change in the Chinese steel plate market.
Overall, the Chinese domestic steel plate market is expected to continue its downward trend in the coming week.