Steel prices in China are expected to fluctuate at the bottom due to sluggish demand and a supply glut, according to a recent report by China Metals.
There had been a marginal rebound in August in the lead-up to China’s V-Day parade, when steelmakers were expected to cut production to reduce pollution levels.
The China Iron and Steel Association’s Complex Steel Price Index recorded 63.36 at the end of August, up 1% from a month earlier, but the index was still down by just over 30% when compared to one year ago.
The price index for long steel – used mainly in the construction industry – rose nearly 3% at the end of August when compared to a month earlier, but the price index for sheet steel declined 0.82% compared with a 7.82% drop the previous month (July).
Taking a longer term view, the long steel price index dropped 28.38% on a year-on-year basis while sheet steel fell 32.72%.
Source: China Metals