On April 26, the China Iron and Steel Association (CISA) released its latest data showing that the average daily crude steel output among its member companies in mid-April was 1.8891 million tons, marking a 0.48% decline compared to the same period last year. Meanwhile, the average daily steel output stood at 2,115,800 tons, down 0.38% from the previous period.
The figures highlight a continued challenge for the steel sector, as despite high production levels, inventory reduction remains sluggish. At the end of mid-April, the steel stocks held by CISA members reached 13.6661 million tons, a slight decrease of 0.52% from the end of the previous decade.
Industry analysts told *Securities Market Weekly* that after the Chinese New Year, domestic steel prices have been on a downward trend. So far, the cumulative drop in construction steel and plate prices has reached 300–400 yuan per ton, while hot-rolled coil prices have fallen by approximately 600 yuan per ton.
Analysts also pointed out that in January and February 2013, major and medium-sized steel companies under the CISA made a small profit of 2.336 billion yuan. However, with rising costs due to higher-priced iron ore and increased contract activity in March, it is expected that these companies will face losses in March, with the loss widening further in April. Based on current production costs and market prices, most steel mills are losing between 150–200 yuan per ton. Some have reduced output or carried out maintenance, but the scale remains limited.
Moreover, analysts believe that with steel prices hitting their lowest level in six years, there’s little room for further declines. On one hand, steel mills are now operating at a full-scale loss, making it unrealistic for traders to push prices even lower through aggressive selling. On the other hand, current market inventories are spread out, with large traders holding low stock levels. Compared to previous years, inventory has dropped significantly, and much of the available stock has already been sold. As a result, traders are not eager to sell more, which limits the potential for further price drops.
Despite this, the room for price increases is still constrained by overcapacity and weak steel trade financing. It is expected that steel prices will remain volatile throughout May.
The China Iron and Steel Association also suggested that the steel price cycle might be coming to an end. For instance, Baosteel kept its factory prices for hot-rolled and cold-rolled products unchanged in May, but the order preference margin increased. Meanwhile, Wuhan Iron and Steel reduced sheet prices by 100–240 yuan per ton, Anshan Iron and Steel cut plate prices by 100–150 yuan per ton, Shougang lowered coil prices by 150 yuan per ton, and Hegang reduced plate prices by 200–250 yuan per ton. These price adjustments reflect a lack of confidence in future market conditions.
Although the steel industry is currently in its peak season, demand remains weak. The domestic steel market continues to face a supply-demand imbalance, and prices are expected to fluctuate in May.
At a recent industry conference, the Deputy Secretary-General of the China Iron and Steel Association told *Securities Market Weekly* that crude steel production in 2013 is expected to reach about 746 million tons, with apparent consumption around 700 million tons. The full-year steel price is expected to show a low, high, and turbulent upward trend.Paint Spraying Gun,Paint Spray Gun Black,Paint Spray Gun Cost,Paint Spray Gun Air
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