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| Steel inventories exerting downward pressure on prices in China - 04 Jun, 2010 | ||||||||||||||||||||||||||
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Recently, china’s steel market is depressed by both weak demand and surplus supply, with serious price inversion, but iron ore price is more likely to rise. Under multiple pressures, China’s main steel agencies all believe that the June steel market is hard to find its way out of the adjusting stage. Although the downward space is limited, it is quite likely that steel price will fall again in late June, duet to the current cost and demand relation. The second round of destocking is coming On the one hand, China’s domestic steel production is continuously hitting new highs; on the other hand, downstream demand in April was falling rather than growing. The two factors result in the second round of high stock since the beginning of the year. According to Usteel statistics by the end of May, steel stock in Chinese market is still quite high. The steel gross of five major species like thread, wire, cold roll, hard roll and plate is approaching 16m tonne. Last year, the real demand is lower than the apparent consumption, and huge stocks are accumulated. This year, the consumption level is still low, and quite some steel mills are asking agents to increase orders, as exports fall. So, the overall steel market will still be under high pressure in the later period. Steel price June may go downward again Nowadays, industry insiders share the same belief that the performance of Chinese steel industry in June can be quite unsatisfactory. Although there are a lot of uncertainties in June, a comprehensive analysis of all factors shows that steel price still has a downward space of five to ten percent, but it is a slow fall rather than a price crash. If the market performance of June shall continue, the third quarter loss is then s foregone conclusion. www.steelprices-china.com is a comprehensive service for tracking real time domestic steel prices and trends in China on daily basis. The scope of service includes 1. Domestic pricing information in China 2. Export levels from Turkey, Rotterdam, China, India and Black Sea The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region Methodology and access 1. Benchmark products in each category with fixed commonly used sizes and grades 2. Average transaction levels which have settled well, based on continuous interactions with domestic mills and traders 4. On fixed market oriented payment terms 5. Daily updates 6. Data available since July 2008 5. Access through web site Products covered 1. Input materials and semis 2. Long Products 3. Flat Products 5. FOB levels for export FOB Black Sea, China, Turkey and India The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news. Subscription The single-user subscription for 12 month is CNY 5,000 for persons residing in China and USD 750 for persons residing outside China. The single user subscription for 12 month is CNY 5000 for persons residing in China and USD 750 for persons residing outside China for individual single user for 12 months. To subscribe for this service, please go to the Registration Page and enter your personal or company billing information along with number of subscription and you shall be directed to a link for making payment by credit card through PayPal else we would forward an invoice to you for bank transfer or cheque payment. If you would like two or more access licenses to Steelprices-china.com for your company, a multi-user license is required and is more cost effective and easier to manage than having numerous individual subscriptions.
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