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RONSCO Weekly | May 5th Steel Market Recap: China’s Steel Prices Continued to Fall

Date:2023-05-05View:185Tags:Oil Country Tubular Goods,Pre Galvanized Steel Pipe,Seamless Hydraulic Tubing

Welcome back to Ronsco Weekly, where we provide the latest Chinese steel prices and market insights each week!

 

If you are interested in our information and article, please focus on our website to stay up to date with future updates.

 

In this week,China's steel prices have decreased significantly, both domestically and for exports, compared to the previous week. The decreasing cost of goods has caused fear and hesitation among consumers, leading them to postpone their purchases. Therefore, the already weak demand has been made worse, resulting in a poor market performance.

 

Fortunately, The positive outcome of the market decline is that it has been slowed by steel mills cutting back on production and customers stocking up before the Chinese Labour Day holiday.

 

Now, let’s check out the production and consumption aspects. First of all, Steel mills are cutting back on production in order to counteract the decrease in prices and help keep the market steady. According to Mysteel, steel production decreased by 86 thousand tons, apparent demand for steel increased by 11 thousand tons, and total steel inventory decreased by 480 thousand tons.

 

Let’s looking ahead to next week’s market,We anticipate that reducing production in the near future will reduce the cost of iron ore and coking coal, which are essential components of steel production, but it will also lead to a decrease in demand for these materials.

 

Conversely, steel production costs have been weakened, leading to steel prices also have been weakened. Furthermore, reduced production during peak season has caused the market to become more pessimistic about future steel demand.

 

Based on the factors mentioned, we expect the Chinese steel market to keep declining in the coming week.

 

Well, what is your opinionwhether Chinese steel prices will decrease in the following week? We will update continuously in next week. See you!