According to the data released by MOFCOM, in last week Chinese domestic steel price dipped by 0.4% from prior week, indicating that the domestic steel price has declined for four consecutive weeks.
Looking the market dynamics in detail, the price for high speed wire rod with diameter of 6.5 mm, hot-rolled steel sheet with thickness of 3 mm and U-steel with specification of 8# had decreased by 0.6%, 0.5% and 0.4% respectively from previous week.
Experts said that the rising steel output from mills and contracting automotive steel demand are the main reasons for the price drops in last week. As for the market prospect, we deem that the domestic steel price will continue its weak trend in the short run due to oversupplied market situations.