Chinese Finished Steel prices to fluctuate in coming months

CHINA May 20 2016 12:23 PM

SHANGHAI (Scrap Register): 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.