Oversupply to drive raw material and steel product prices down in China

摘要

A rise in steel production in China in April secured the stability of iron ore prices. In mid-May, Australian 62% Fe iron ore was quoted at $67/t CFR, while coking coal prices rose by $3/t to $189/t FOB Australia over a month.Domestic demand for steel products in China remained rather high in May. By mid-May, traders' inventories in China's largest cities shrank by 20% month-on-month, though the figure was still 12% above the year-ago level. Despite state support, finished steel consumption is likely to gradually decrease in China over the next few months, so the price forecast does not look optimistic.