Few trades have resulted in falling prices of
Steel Pig Iron in China.
Though, central bank cut the RRR and raw
material prices have come down, Pig Iron market is unexpected to show some improvement as sales
in finished products is not encouraging.
Demand from local steel producers is also low.
Issues such as availability of power is anticipated to happen next month as
electricity is diverted for consumer use and demand might come down further
because of summer heat.
Couple of cities in China that are facing issues:
In Shanxi, production in some plants has
stopped for a temporary period and they have made sales at low prices to get
rid of inventory.
In Hebei, as steel
prices have come down, some mills have shut down bearing losses. Power cut is also being witnessed due to maintenance issues.
Overall, weak steel demand will keep Steel Pig Iron
markets in less action.
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