CISA:China steel price recorded new low level frequently

According to CISA, China has produced 618 million tonnes of crude steel, 542 million tonnes of pig iron, 839 million tonne of steel products in the first three quarters this year, representing a YoY increase of 2.34%, 0.38% and 5.02%.

On Oct. 17, Chinese Comprehensive Steel Price (CSPI) dropped to 86.15 point, reaching the lowest level since January 2003. Now, steelmakers were lingering at the edge of making profits or losses under the circumstance of dispirited price, tepid market demand and oversupply. The scale of losses of major steelmakers in the first three quarters accumulated 25% decreasing by 6.28% YoY.

As for imports and exports, the average price of steel imports came to USD 1246 per tonne; while the average price of steel exports was USD 783 per tonne. The price spread between imports and exports still enlarged.

Mr Zhang Changfu, Vice Chairman of CISA said that “The increase of steel exports lies in the substantial decline of steel price and the great price spread between China and abroad. There is no doubt that steel exports will break through 80 million tonnes this year. However, low-price export will cause trade frictions. It is not a long term policy to digest domestic excess capacity by large quantity of steel exports."







 

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