According to the data released by MOFCOM, Chinese domestic steel price dipped by 0.3% from prior week in last week, indicating that the domestic steel price has declined for three consecutive weeks.
Looking the market dynamics in detail, the price for hot-rolled steel sheet with thickness of 3 mm, H-beam with specification of 500*200 mm and rebar with diameter of 12 mm had decreased by 0.5%, 0.4% and 0.3% respectively from previous week.
Experts said that the dropping steelmaking ingredient price and shrinking automotive steel demand are the main reasons for the price dips in last week. Accordingly, the domestic iron ore and coke prices have decreased by 2.6% and 1% in respective compared to May. Entering the traditional steel low season, we deem that the domestic steel price will soften further in the near future.