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RONSCO Weekly | May 24 Steel Market Recap: China’s steel prices experienced a volatile trend

Date:2023-05-24View:212Tags:Seamless Alloy Steel Tube,API Coupling,Structural Steel Pipe

Hello everyone! Welcome to RONSCO Weekly! This article is to providing the latest Chinese steel prices and market trends every week. If you are interested in our information and article, please focus on our website to stay up to date with future updates.

 

This week, the Chinese steel market saw a fluctuating trend, with some prices increasing slightly while others kept going down. There is still an excess of supply, making the market conditions remain weak.

 

Market participants had different opinions and were uncertain about the future due to a decrease in real estate investment year-over-year and April's social financing and new RMB loan data being much lower than expected.

 

The government's lack of clear direction has caused uncertainty in the market, leading to a mixed trend in steel prices that fluctuate between increases and decreases. This raises the question of whether the government will take more drastic action, such as reducing interest rates, to stabilize economic growth.

 

MySteel's latest research shows that Chinese steel production decreased by 43,100 tons this week, with a decrease in demand of 111,700 tons and a total inventory decrease of 779,800 tons. The demand side appears to be weak.

 

On the supply side, Steel production levels have been low compared to the previous year, but the cost of raw materials has decreased more than the cost of steel, resulting in an increase in profits for steel mills in the last two weeks.

 

Due to this, there has been a notable decrease in steel production. Analysts from RONSCO believe that the quick decrease in prices from the previous period has reduced the pessimistic outlook and risks, making it less likely for prices to drop further.

 

However, It is expected that Chinese steel prices will remain steady in the next week, as there are both bullish and bearish factors at play. Demand is not expected to increase significantly in the next few months and may even decrease due to the rainy season. It is also unclear if monetary policy will be able to stimulate economic growth.

 

Well, how do you see the Chinese steel market? We will continue to observe the Chinese steel market and provide you with the latest information and insights. If you found this article useful, please remember to focus on our website, we'll update next week! 

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