Not much needs to be said that how Chinese steel industry shapes the global industry. The fortune of global steel makers is closely linked to steel scenario in China, which has been witnessed many times since 2001.
The global steel market is facing the situation once again, wherein Chinese steel sector burdened with very high steel inventories pushing down domestic steel prices, has come back to global arena.
Chinese aggression is evident from the fact that the prices of benchmark product HRC have come down by USD 120 per tonne from USD 620 per tonne CFR levels to close to USD 500 per tonne CFR in a matter of just 3 weeks.
The early signs of such an eventuality started appearing on August 7th 2009 when Chinese domestic HRC prices started sliding. The peak level of CNY 4300 per tonne for HRC 4.5mm at Shanghai reduced to CNY 3630 on August 31st and is now at CNY 3310, which translated into total reduction of about CNY 990 per tonne or USD 145 per tonne.