While the longer-term outlook is looking more promising, the Chinese steel market for 2015 is being described as ‘lacklustre’ by market watcher Xiben Shinkansen.

The supply glut is expected to remain a major dampener for Chinese steel prices, which saw sharp losses in January 2015 and the steel index falling 10.92% compared to December 2014 and by 27.3% when compared with the same period last year.

Steel prices in China are now at their lowest for 10 years and the Chinese steel PMI recorded 43% in January, falling for the 11th straight month and having stayed below 50% for nine consecutive months.

Production was slashed by 5.09% between 11-20 January but inventories surged 8.25%. Raw materials prices fell at a moderate pace.

Source: China Metals.