As of the end of June, the composite steel price index (CSPI) for the Chinese domestic market issued by the China Iron and Steel Association (CISA) declined to 98.52 points, down 3.25 percent compared to the end of May and down 14.69 percent year on year.
As of the end of June, the prices of the main steel products in the Chinese domestic market all indicated decreases compared to the end of May. In particular, as of June 30 compared to May 31, the prices of high-speed wire rod, rebar and angle steel were respectively down RMB 157/mt ($25.4/mt), RMB 164/mt ($26.6/mt) and RMB 159/mt ($25.8/mt), while the prices of steel plate, hot rolled coil, cold rolled sheet and galvanized steel sheet indicated respective decreases of RMB 107/mt ($17.3/mt), RMB 72/mt ($11.7/mt), RMB 145/mt ($24.5/mt) and RMB 108/mt ($17.5/mt), while the price of seamless pipe was down RMB 77/mt ($12.5/mt).
As of June 30, total finished steel inventory in the main Chinese steel markets reached 15.46 million mt, decreasing by 6.66 percent compared to the end of May and down 0.52 percent year on year.
In June, China's iron ore import price was at $126.8/mt CIF, down 4.5 percent month on month and indicating a month-on-month decrease for the third straight month. The prices of iron ore concentrate, metallurgical coke and scrap from Chinese suppliers were down RMB 29/mt ($4.7/mt), RMB 73/mt ($11.8/mt) and RMB 38/mt ($6.2/mt) respectively in June, all month on month.
In June, the imbalance between supply and demand in the Chinese domestic steel market witnessed no obvious improvement due to weak market demand and the high output capacity utilization of Chinese mills.
The CISA stated that the increasing industrialization and urbanization in China involves a large investment and consumption potential. Meanwhile, the rebuilding of shanty areas, investments in railways and infrastructure construction in cities as well as investments in energy saving and environmental protection are expected to boost steel demand in the second half of the current year.