According to the data released by MOFCOM, Chinese domestic steel price decreased by 0.2% in the week ended on May 6 from prior week. In detail, the price for medium plate with thickness of 100 mm, cold rolled steel sheet with thickness of 1 mm and high speed wire rod with diameter of 6.5 mm had inched down by 0.4%, 0.4% and 0.2% respectively week over week.
Experts said that the sluggish steel demand from final customers and decreasing EXW prices from mills are the main reasons for the price dips in last week. For instance, Shagang Group has decided to cut its EXW prices by 60 yuan per ton. As for the market prospect, we thought that the domestic steel price will continue its weak trend in the short run.