According to the data released by MOFCOM, Chinese domestic steel price decreased by 0.3% in last week, indicating that the domestic steel prices have slid down for six consecutive weeks.
Looking at the market dynamics in detail, the price for high speed wire rod with diameter of 6.5 mm, medium plate with thickness of 10 mm and rebar with diameter of 12 mm had inched down by 0.4%, 0.4% and 0.3% respectively in last week from previous week. During the given period, the price for iron ore also had shown a downward trend with the week-over-week decrease of 3.5% from prior week.
Experts said that the rising steel capacities from steelmakers and decreasing prices for upstream raw materials are the main reasons for the price drops in last week. As for the market in future, we deem that the domestic steel price may decline again because the prices for iron ore and coke are expected to continue rolling back in the near future.