HRC prices decreased by USD 31 per ton to USD 449 and rebar prices fell by USD 28 per ton to USD 462, reporting a significant decline in export prices.
In response to the difficult market conditions, many steelmakers in China have initiated voluntary production cuts. This has led to a decline in both blast furnace (BF) and electric arc furnace (EAF) utilization rates.
The market continues its downward trend
China Baowu Steel Group Chairman Hu Wangming said that the current situation in the Chinese steel industry will last longer than expected and will be difficult.
One of the major factors contributing to the ongoing weak demand has been the severe decline in the property market, which accounts for about 29% of China’s steel demand in 2023. The situation is made more worrying by the decline in infrastructure investment and the few new projects in the future.
China’s steel industry is expected to continue to face pressure on prices and profitability in the near to medium term, with analysts suggesting that unless demand improves significantly, the country could continue to struggle with low prices and shrinking margins through 2025.
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