As of February 19 this year the composite steel price index (CSPI) for the Chinese domestic market increased to 58.07 points, up 0.82 percent compared to the CSPI recorded at the end of January (Jan. 31), while the rising trend of CSPI will not likely continue for long due to the imbalance between demand and supply in China’s domestic finished steel market, according to the China Iron and Steel Association (CISA).
As indicated by CISA, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had declined for four consecutive months as of the end of January this year, while Chinese finished steel exports also indicated a slight decrease in January due to more antidumping and countervailing cases being initiated against Chinese finished steel exports. In addition, the imbalance between demand and supply remains the root cause of difficulties in the domestic finished steel industry. The CISA said that steel enterprises in China need to consider the situation carefully and should not blindly expand production.