Local Chinese steel plate market influenced by low demand and high costs

During the week ending August 5, steel plate prices in the Chinese domestic market have declined slightly amid sluggish market activity. Average steel plate prices in China can be viewed in the SteelOrbis price reports section.
 
Amid the current extremely hot summer weather, Chinese steel producers have lately been operating at reduced capacity utilization rates due to the central government's electricity rationing measures. In addition, overall market demand for steel plate continues to contract and so market activity has slowed down. Given the drop witnessed in the steel futures market and the price declines seen in the markets for other steel products in China, local steel plate traders are now short of confidence and this has negatively impacted offer prices in the market. However, with the ongoing support of high raw material costs and low market inventory, it is expected that Chinese domestic steel plate prices will just indicate slight fluctuations in the coming week.