top of page
Search

Oversupply likely to cap gains in China steel prices for months: CISA

  • Writer: Alpine Metals
    Alpine Metals
  • May 20, 2018
  • 2 min read

Steel prices in China are unlikely to rise by much in coming months as the market was set to remain oversupplied due to rising production, the China Iron & Steel Association said in its monthly steel market analysis.


Steel mills ramped up production in April for the spring peak demand season, when profit margins were healthy. However the outlook for growth in property and infrastructure construction was slow for the remainder of the year and this may dampen steel demand going forward, CISA said.


China’s domestic composite steel price index, comprising both long and flat products, retreated slightly in the second week of May after rising steadily from end March to the first week of May, the report showed.


The rise in April was attributed to the strong demand and falling stocks amid the seasonal peak, but oversupply will cap any rise in prices in the months ahead, CISA said.

China’s crude steel output totaled 76.7 million mt in April, up 4.8% year on year. Daily crude steel production hit a record high of 2.56 million mt in the month, up 7.1% from March. However, this significant rise in output was likely to add downward pressure to prices going forward, CISA said.


Steel stocks remain relatively high despite falling for the consecutive sixth week last week.

Stocks held by traders totaled 12.71 million mt last Friday, down 5.28 million mt or 29.4% from end March, but up 4.77 million mt or 60.1% from the start of this year and up 1.37 million mt or 12.1% from a year earlier.


CISA in its report called on Chinese mills to curb production in a bid to ensure market stability.

Source: Platts / Hellenic Shipping News

 
 
 

Recent Posts

See All
Hello from Alpine Metals

Thank you for taking the time to visit our website and blog. In our aspiration to serve our customers, we have come up with the idea of...

 
 
 

Comments


Alpine Metals is a leading supplier, stockholder and distributor of structural steel products and pipes in the UAE, catering to many thousands of clients in the GCC since 1983. At Alpine Metals, we are committed to providing the highest quality structural steel products to our clients in the UAE and beyond. As a leading stockist of structural steel products, we have earned a reputation for excellence in the industry and are proud to be a trusted partner for many businesses.

Plot S10305, South Zone 1, Jebel Ali Free Zone, Dubai, United Arab Emirates

PO box 18077, Dubai, United Arab Emirates

  • facebook
  • googlePlaces

©2025 by Alpine Metals FZCo

bottom of page