Steel price stabilize in the context of trade stress

Steel prices on Chinese markets are likely to stabilize in precarious trade relations, thanks to the strengthening of dust control measures before the country's 70th anniversary, China Iron and Steel Association (CISA) said in the monthly market commentary.

 

 

Steel price has tended to decrease since the second week of July and was at 106.58 for the third week of August, according to monthly report published on Tuesday, August 20th, China Steel Industry Association (CSPI).

 

China 's 70th anniversary of its founding in October has led areas near Beijing's capital to make efforts to improve the air quality. This is expected to reduce steel production as large steel production centers such as Duong Son, Vu An and Ham Dan are cutting their production.

 

CISA data shows that daily crude steel production across the country averaged 2.75 million tons in July, down 5.8% from a record high in June but reaching the fourth highest in history.

 

 As of August 16th, inventories of steel products stood at 15.69 million tons, up 3.04% compared to the end of July equivalent  to 460,000 tons.

 

CISA expressed her concern about the demand due to weaker exports and disputes with the US. The data shows that China's steel exports fell 2.9% year-on-year to 39.97 million tons in the first 7 months of 2019, greater than 0.3 points compared with the decline in January-June.

 

 However, a series of stimulus measures from the central government to boost the economy which is growing slowly, expected to keep steel demand stable, CISA believes.

Source: Satthep.net