China's Domestic Steel Prices Continue to Decline on Downward Trend
Liao Shumin
DATE:  Jan 08 2018
/ SOURCE:  Yicai
China's Domestic Steel Prices Continue to Decline on Downward Trend China's Domestic Steel Prices Continue to Decline on Downward Trend

(Yicai Global) Jan. 8 -- China's domestic spot steel prices are still on downward trend despite the relative decline has narrowed, state-run Xinhua News Agency reported yesterday. With the latest wave of rainy and snowy weather conditions, the demand side witnessed further shrinking. However, Iron ore market has rebounded, but imported ore stocks in ports have reached a new high.

In the first trading week of this year, the domestic spot steel composite index closed at 155.44 points, down 1.88 percent over the week. As a whole, the price of steel continued to fall on downward trend, but the decline narrowed compared with the week earlier, showed data provided by domestic steel industry information agency My Steel.

The spot steel market turnover is still weak, only with good performance in low-priced products in some areas despite steel futures market showed signs of gain, they said. However, with the onset of treacherous weather conditions in China, the market transaction volume significantly dropped, and the quotations of merchants continued to soften.

At present, domestic steel market end-use demand is relatively weak, relevant agencies pointed out. Steel traders' decision-making on winter inventories and steel mills are on hold as they adopt a wait-and-see approach. This has led to an accumulation of steel mills stocks and social inventories of steel. Against such backdrop, analysts expect further decline in spot steel prices in the short term, they said.

Follow Yicai Global on
Keywords:   Steel,Iron Ore