June steel prices in China fall despite rising demand
China’s steel prices continued to decline in June with more fluctuations expected, data from an industry association showed.
The steel price index issued by the China Iron and Steel Association (CISA) stood at 109.45 points by the end of June, down 1.49 percent from the previous month and marking a 5.48-percent slip compared with the same period last year.
Seven of the eight categories of steel products monitored by the association saw prices decline, with the only exception being iron whose price gained 0.5 percent.
The price drop, withstanding a cost hike caused by more expensive raw materials like iron ore, was the result of stable demand balanced out by supply upticks, the CISA data showed.
The price drop came as market demand for steel was on the rise amid expansion in infrastructure, property and manufacturing investment and other steel-using industries.
Meanwhile, steel output in China picked up steam as average daily crude steel production hit a record high of 2.92 million tonnes in June, the CISA said.
The price decline echoed the downhill trend of global steel prices seen in North America, Europe and Asia, according to the CISA.
The association expected more fluctuations with little sign of swift recovery for China’s steel prices, considering the possibility that the mounting steel stockpile may continue to cancel out the effects of steady economic growth and increasingly rigorous environmental protection regulations.
The CISA data also showed that China’s steel exports edged down 2.6 percent year on year in the first half of 2019 partly due to the downward global economic landscape.