The Lunar New Year holidays, which fell over 10-17 February this year, further dented Chinese home demand which led to higher inventory pile-up at key mills. The China Iron and Steel Association (CISA) reported total steel inventories of key enterprises in mid-March 2024 at 19.53 mnt, which were up 2.92% m-o-m compared to 18.98 mnt in mid-February and 3% y-o-y compared to 19 mnt in mid-March 2023. China’s cut-throat pricing strategy continued into 2024, which has out-priced other exporting countries, especially India. Chinese export offers averaged $543/t FOB in March 2024, a 3.5% m-o-m drop from $563/t in February. In fact, offers fell back again after a slight uptick to around $575/t in December 2023-January 2024. In contrast, Indian offers hovered at a higher $583/t in March and even higher over January-February, 2024.
