According to Mr Wang Dayong secretary general of Hebei Association of Metallurgical Industry, the domestic steel price has fallen for ten weeks in a row, with the average loss posted at some CNY 400 per tonne and the deepest drop for certain products exceeding CNY 1000 per tonne. At the current price level, majority steelmakers there have dropped into loss making.
The steel prices were on the rise in the first quarter and started to fall downward from mid-April. So far, the average price for major steel varieties came to CNY 4597 per tonne and the construction steel price has fallen to CNY 4172 per tonne on average down over CNY 400 per tonne respectively. While the price comes down, the production cost contrarily keeping going up mainly for iron fine coke etc.
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