China demand cooling

28 April 2020
China demand cooling

China demand cooling

China's domestic steel prices have started to soften in what may spell the start of a turn in the country’s ability to absorb the region’s steel glut through its recent spate of imports.

Spot prices of rebar in Beijing have fallen Yuan 60/mt or 1.7% over the past week to Yuan 3,540/mt ($500.10/mt) ex-stock Friday, while HRC prices in Shanghai fell Yuan 45/mt or 1.4% over the same period to Yuan 3,285/mt ex-stock, S&P Global Platts assessments showed.

Market participants said that while steel inventory levels have shrunk on a week-on-week basis, they remained high compared with the same time last year.

The number of billet deals observed on a CFR China basis as of April 24 had fallen to six for a total volume of 150,000 mt, compared with 21 for a total volume of 760,000 mt in Q1, spot market data compiled by Platts showed.

China's domestic steel demand will likely be supported in the medium term by sustained measures by the government to support the economy, but it remains to be seen if any boost to domestic demand can overcome the shortfall of orders for Chinese products from overseas markets as most of the rest of Asia continues to tackle the pandemic.

-- Keith Tan, Marcus Ong, Analyst Joy Zhuo


Source : Steel Business Briefing

Related News

The information in the above report, publication and website has been obtained from sources believed to be reliable. However, Iron & Steel Institute of Thailand does not guarantee the accuracy, adequacy or completeness of the information. Any opinions or forecasts regarding future events may differ from actual events or results. In addition, Iron & Steel Institute of Thailand reserves the right to make changes and corrections to the information, including any opinions or forecasts, at any time without notice.