Monday, September 20,
China’s domestic steel prices will remain volatile in the near future due to oversupply, the China Iron & Steel Association said. “It is expected that steel prices will continue to be volatile in the near future as there are many factors which will affect steel demand growth amid a difficult economic environment both at home and abroad,” CISA said in a statement on its website.
However, CISA expects supply and demand imbalances will continue to ease in September as demand is picking up while some steel mills have slashed production. “Domestic steel demand will continue picking up in September and in the fourth quarter thanks to the growing economy,” it said.
In response to rising demand and prices on the domestic market, Chinese top steelmakers including Baosteel and Wuhan Iron & Steel have increased October product prices by 100-400 Yuan per tonne, suggesting strengthening confidence in the domestic market.
Total inventories of five major steel products, fell by 0.3 percent, or 40,000 tonnes to 14.9 million tonnes in 26 major cities by end-August, mainly due to falling stocks of rebar and wire rod used for the construction sector. But inventories of hot-rolled coil, cold-rolled coil and plate have risen by up to 7 percent. As the world’s biggest steel supplier, steel exports from China will further decline as demand and prices fall in global markets, together with rising worldwide trade protectionism.
Chinese steel exports are expected to average 2.275 million tonnes in September-December after it fell by 38 percent to 2.8 million tonnes in August from July, as the removal of a 9-percent export rebate since July 15 has taken effect.
Source: Reuters
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