Author: Paul Ploumis
14 Oct 2014 Last updated at 08:28:50 GMT
BEIJING (Scrap Monster): The data released from, CISA; China Iron and Steel Association, stated the downfall of steel prices, which continues for 12 weeks without a change, along with that, the real estate and the construction market of the country is hiking up slowly, nevertheless, the steel Composite Price of the country has declined lower to 13 percent when compared with the price that was estimated last year.
According to the data published by CISA, the average price of steel products has declined lower to 5220 dollars per metric tonne, which is stated to 28 percent lower than the average price which was declared in the year 2012.
An analyst based on CIMB, stated that, the oversupply in the market, while the demand graph is slowing down ids the main reason behind the downfall of the steel market. The Chinese Steel Mills are in a competition on filling the market with abundant steel supply, when the demand is crawling downwards, which will only lead to the decline in profit for the steel mills in China.
According to the survey result released by the Wall Street Journal, the export of steel products in the month of September is recorded to be 7.2 billion metric tonnes, which is significantly 4.5 percent higher than the last highest record.