China Securities Journal quoted NDRC monitor of the major steel markets said average steel price of China has for the seven weeks declined and the falling range is expanding. Compared with a year before and the price yet still stays 13.5% higher.
The major steel prices averaged CNY 4746 per tonne down by 1.45%WoW or up by 13.5%YoY.
The price of construction steel is CNY 4252 per tonne down by 1.48% from a week before or up 15.16%YoY, price of flats averages CNY 5072 per tonne down by 1.67%WoW or up by15.93%YoY, price of pipes stands at CNY 5347 per tonne down by 1.55% or 7.92%YoY, that of section is CNY 4259 per tonne off 1.03%WoW or up by 12.16%YoY.
Price monitor finds that concerns about economic recession aroused by the European debt crisis, dense waiting sentiment on property market at home, lofty steel stockpiles and continued antidumping threats combined to work on the falling steel prices. In the future, the global economy will keep vibrating, overcapacity would remain in steel sector, the seasonal demand is weakening and steel stocks could linger at high levels.
Besides, leading steelmakers, such as Baosteel have chopped ex-mill price for July delivery which further dimmed the market prospect. But take into consideration firm support from the materials and fuels, and the sector is shaking off shadow of price tumble, there will be a limited space of downward correction of the price in days ahead.