Chinese steel giants slash prices as demand slumps

China , Metals , Steel Jun 22, 2012 No Comments

China steelSteel prices are under pressure from weak market demand, and the price cuts also show steel companies are trying to deal with bumper inventories since the beginning of this year, said Liu Yuanrui, an analyst at Changjiang Securities Co.

Baosteel Group Corp., Wuhan Iron & Steel Co. Ltd. and Anshan Iron & Steel Group Corp., China’s steel giants, have lowered ex-factory steel prices for July by 130-300 yuan per ton.

Data from the China Iron and Steel Association show that up to June 1, inventories of five steel varieties in 26 cities hit 15.615 million tons, which can be used to build another 371 “Bird’s Nest” Olympic stadiums and triple the size of China’s current high-speed railway network.

Real estate, which once accounted for 60 percent of steel demand, has seen fewer projects. Railways, also once a major source of demand, have been of little help either: fixed investment in railways fell 43.6 percent year-on-year in the first 4 months of the year.

via Chinese steel giants slash prices as demand slumps – Companies & Industries – Morning Whistle – Latest chinese economic, financial, business, political and society news.

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Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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