Steel 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.
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.