In the month of Oct’15, prices of common Carbon square billet (150*150 mm) have hit an all time low level of RMB 1,650/MT. The highest level was seen in Jan’10 in the range of RMB 3,550-3,650/MT.
Dominance of weak Chinese economy, devaluating currency, stringent environment pollution law in China, surge in steel production coupled with prolong subdued domestic demand have dipped prices to such a low level.
Offering steel at such a competitive price, Chinese steel export average monthly rate has touched 9 MnT in eight months of 2015.
In outlook, it seems that steel prices in China will remain under pressure on the backdrop of low domestic consumption and no curtailment of steel production in near-term.
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