China Iron and Steel Association (CISA)
said that finished steel prices in China will likely fluctuate on a soft trend
in the coming months.
However, Chinese crude steel production
edged up by 0.5% year-on-year to 69.42 million metric tons during April this
year, while China’s average aggregate daily crude steel output amounted to
2.314 million metric tons in the given month, hitting an all-time historical
high, reflecting the ongoing oversupply situation in the domestic finished
steel market.
Chinese domestic iron ore prices were at
RMB 512/mt ($78.41/mt) during the second week of May, down 1.56 percent week on
week, while steel scrap prices decreased to RMB 1,416/mt ($216.85/mt), down by
11.61% compared to the end of April, which will likely exert negative pressure
on domestic finished steel prices.
Source: Metal.com