Although it should have been the boom season now for steel sales affected by macro control policies in real estate field Chinese steel prices still continue to decrease. It is reported that construction steel prices have been almost below the cost line. Moreover steel mills such as Hebei Steel and Shagang also announced new pricing policies to reduce their EXW prices.
According to statistics from Lange Steel Information Research Center prices of all varieties of steel productions saw consolidation last week. Until May 21st, price of rebar decreased by CNY 125 per tonne and price of WRC decreased by CNY 138 per tonne compared with the same period of the week before. In addition HR and CR prices also dropt by CNY 100 per tonne to CNY 200 per tonne.
As to Chinese steel mills, most of them substantially reduced their EXW prices. Just on last Friday when Chinese steel prices saw minor rebound, Hebei Steel and Shagang both released new pricing policies. Shagang declined EXW price of WRC by CNY 300 per tonne and EXW price of rebar by CNY 250 per tonne. Thus since May 11th the EXW prices of rebar and WRC have been reduced by CNY 550 per tonne and CNY 400 per tonne.
On the same day Hebei Steel also announced settlement prices of HRC and CR in May and order prices for June most of which on down path similarly. For example settlement price of cold rolled steel sheets in May fell by CNY 350 per tonne and the order price for June dropt by CNY 300 per tonne.
Survey of My Steel shows that predominant view of steel prices by Chinese steel enterprises is that the prices will remain decreasing. The survey covers 46 critical steel mills and 133 steel traders in 15 Chinese cities including Shanghai, Beijing, Tianjin and Chongqing.