China's largest flat steel producers, including Baosteel, Angang, and Bengang, have decreased their prices for September sales, reflecting expected difficulties in the iron and steel market.
Baosteel has decreased prices for hot-rolled and cold-rolled products by 100 yuan (about USD 14) per ton for September. Angang and Bengang have implemented more substantial decreases, reducing prices for most of their products, including HRC and CRC, by 200 yuan (about USD 28) per ton.
Following these price adjustments, Taiwan's China Steel Corporation and Vietnam's Formosa Ha Tinh Steel are expected to announce their flat steel prices for September. Market experts predict that the price decreases by China's leading producers will pressure these companies as they prepare their pricing strategies.
Despite a decline in production, HRC stocks in the Chinese market increased last week. However, spot prices for these products decreased more slowly than futures, as traders resisted further price drops.
Globally, HRC prices continued to fall in most major markets throughout July. Europe experienced mostly stable conditions with minor fluctuations, while prices in the US and China decreased by 4-7%. In China, prices reached their lowest levels in four years, while in the US, they hit their lowest levels since September 2023.
The outlook for China’s steel industry remains bleak. The ongoing decline in the real estate market, once the country’s largest steel consumer, has significantly reduced demand, leading to decreasing steel prices and shrinking industry profits. Despite these challenges, the Chinese government continues to focus on long-term economic reconstruction and is providing little relief to the struggling steel sector.
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