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China's Steel Market in 2nd Week of May/Slow Price Decline Not Ceases
The Chinese market prices of steel products remained in a state of a gradual decline in the 2nd week of May as well. According to information released by the China Iron & Steel Association (CISA), prices of almost all items dropped. Besides Baoshan Iron & Steel (Baosteel), other major blast furnace mills will set out their domestic prices of steel products for June shipment soon which are foreseen to be reduced from the previous month. The range of price decline in the market was within 7 to 24 CNY (a little over $1 to a little less than $4), and it was lower than that of Baosteel (by 150 CNY or $24). Accordingly, it is subtle whether expected price reduction by the blast furnace mills including Baosteel will put downward pressure on the market prices.

According to data of the CISA, the market price of hot-rolled (HR) steel coils on national average was 3,851 CNY ($611 including tax, hereinafter the same), down 24 CNY (a little less than $4) from the previous week. Compared to its price of 4,187 CNY ($665) in mid-March, it dropped by as much as 334 CNY ($53).

That of cold-rolled steel sheets decreased by 13 CNY ($2) from the previous week to 4,707 CNY ($747). That of galvanized steel sheets was 5,128 CNY ($814), down 7 CNY ditto. The range of price drop was narrower than that of HR coils but any change in a tendency of a slow decline has not been seen for the time being.

That of steel heavy and medium plates was 3,803 CNY ($604), down 20 CNY ($3) ditto which is seen to dip below the level of $500 soon the same as HR coils and so on. The domestic prices of both items are exceeding the bottom prices in the export market yet but they are coming close to a turning point. If the domestic prices fall below the export market ones, excess quantity will seep to export further.
last modified : Thu 16 May, 2013 [11:15]
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