While finished steel prices in the Chinese domestic market have continued to increase, in March China’s pig iron, crude steel and finished steel outputs have indicated respective rises of 2.2 percent, 2.9 percent and 3.3 percent year on year, reaching 60.2 million mt, 70.65 million mt and 99.23 million mt, respectively, according to a report by the China Iron and Steel Association (CISA).
Meanwhile, by the end of the third week of April, the composite steel price index (CSPI) in China has risen by 11.18 percent compared to late March, up by 35.83 percent compared to the beginning of this year. The CISA pointed out that some capacities which had been idled or suspended have been put back into production, which will likely exert a negative impact on finished steel prices as supply will indicate increases.
In addition, China exported 9.98 million mt of finished steel in March, up by 23.1 percent month on month, while the average export price edged down to $430.19/mt, down 0.85 percent month on month. With rising protectionism from Southeast Asian and European countries against cheap supplies from China, it is thought that China will face difficulties as regards exports of its finished steel.