According to a report released by the China Iron and Steel Association (CISA) on October 20, amid the imbalance between supply and demand in the domestic finished steel market, no significant improvement has been seen in demand and domestic finished steel prices indicated a declining trend in September after the short-lived rebound seen in August.
According to the CISA’s report, in the January-September period this year China’s crude steel output amounted to 609 million mt, down 2.1 percent year on year, while China’s apparent consumption of crude steel totaled 533 million mt, down 5.8 percent year on year. In the given period, China’s net exports of finished steel amounted to 65.54 million mt, up 35.1 percent year on year.
Meanwhile, overall domestic inventories of finished steel products in China’s main markets as of the end of September this year totaled 10.26 million mt, down 330,000 mt compared to the end of August this year and decreasing by 1.28 million mt compared to the end of September 2014.
As of September 30, the composite steel price index (CSPI) in China decreased by 5.47 percent compared to mid-August this year, having declined for six consecutive weeks, according to the CISA’s report. It is thought that China’s finished steel prices will likely fluctuate within a limited range in the coming period.