According to the data released by MOFCOM on October 19, China's domestic steel price had declined by 1.2% for the week ended on October 16 compared to prior week. For instance, the price for non-oriented silicon steel sheet with thickness of 0.5mm, rebar with diameter of 12 mm and high-speed wire rod with diameter of 6.5mm had decreased by 2.5%, 1.8% and 1.8% respectively week over week. This was also the eighth consecutive weekly decline.
Meanwhile, the social construction steel inventories in China's 29 main cities had amounted to 7.3832 million t till October 14, increasing by 6.5% as compared to the levels before National Day Holiday and by 11% in comparison to same period of last year.
It is reported that the sliding raw material prices and rising social inventories are the main reason for the current price drops.