CISA: Steel prices in China shift from decline to uptrend in Sept

Finished steel prices in China in September shifted from a downtrend to an uptrend in September, as stated by the China Iron and Steel Association (CISA).

As of September 30 this year, the China Steel Prices index (CSPI) stood at 108.4 points, up 0.06 points, increasing by 0.06 percent month on month. 

In September, the average import iron ore prices stood at $106.75/mt, increasing by $14.7/mt compared to December last year, rising by 15.9 percent, while the average finished steel prices declined by 4.28 percent in the same period. The relatively high levels of import iron ore prices exerted strong pressure on steel enterprises from the cost side. 

In the January-September period this year, the crude steel output amounted to 795.07 million mt, increasing by 1.7 percent year on year, while the apparent consumption of crude steel declined by 1.5 percent year on year, though finished steel exports almost reached the level for the whole year of 2022, with steel exports playing a major role in the rise in China’s steel output. However, it is not clear if such strong exports will continue in the future. 

Due to the weak performance of the real estate industry, demand for rebar and wire rod has been slack, while demand for flat steel products has been better in comparison. 

Since the weather has been getting colder and colder, the CISA urged steelmakers to pay close attention to the situation in steel market in the near future and to strictly control outputs, in order to ease the pressure from the supply side.