During the first half of 2014, Chinese steel prices fell to an eight-year low. However, the profits of Chinese steelmakers improved thanks to lower iron ore prices.
Chinese steel prices during H1 2014 were lower than for the same period last year (2013) with steel mills and traders building up stockpiles of a similar size to those of 2013.
Steel prices in China began to fall at the beginning of 2014 and have continued on a downward spiral ever since with the exception of a small rebound at the end of March.
In terms of actual prices, the Myspic steel price index from MySteel recorded a figure of 3,443.7 yuan per tonne, the lowest price since March 2006. In June 2014, rebar was 3,197.82 yuan/tonne (down 365 yuan/tonne from six months earlier) and hot-rolled coil was 3,407.09 yuan/tonne (down 74 yuan/tonne from six months earlier).
Source: China Metals.