MOC: Chinese steel prices down 0.6 percent week on week

Friday, Mar04, 2011

According to the report published on March 2 by China's Ministry of Commerce (MOC), due to weak demand from downstream buyers finished steel prices dropped slightly on week-on-week basis in the past week. In the coming period, as supplies increase, finished steel product inventories will also continue to increase. Thus, the MOC foresees that finished steel product prices in China will drop slightly in the short-term future.

According to the data from the MOC, during the past week domestic finished steel prices in China dropped in the past week by an average of 0.6 percent week on week. Prices of 3 mm common carbon sheet, 10 mm common carbon medium plate and 6.5 mm high speed wire rod dropped by 1.5 percent, 1.2 percent and 1 percent respectively on week-on-week basis.

Meanwhile, data from the China Iron and Steel Association (CISA) have revealed that as of February 20 the finished steel inventories of the 77 medium-sized and large Chinese steelmakers which are members of the CISA had increased to 9.46 million mt, compared to 7.57 million mt at the end of January. In addition, the Indian government has increased the export duty on iron ore fines and lump ore to 20 percent, with the CISA calculating that this adjustment will increase the cost to Chinese steelmakers per each ton of steel by $25, and this could push Chinese finished steel prices upward and also reduce the profit margins of Chinese steelmakers

Russia’s Ashinskiy sees 2.8 percent drop in Jan-Feb steel output

Friday, Mar04, 2011

According to its data issued for the first two months of the current year, Russian steel producer Ashinskiy Metallurgical Works (Ashinskiy) registered a 2.8 percent drop year on year in its steel output to 110,000 mt, including 108,600 mt of slabs - down 0.8 percent year on year.

In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.

In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.