Dented steel prices in China
Steel prices in China have fallen 17% in the past three weeks, as a result of poor weather, slowing property construction and speculation on government restrictions, reports The Standard.
After the steel prices surge for 40% in the first half of the year, prices for hot-rolled steel sheets in Shanghai fell to 4,030 yuan (HK$3,921.26) a tonne on July 7 from 4,830 yuan a tonne on June 19, a high this year, according to data from Beijing Antaike Information Development. The price, which includes tax, slumped 10 percent last week alone.
Concern about an export rebate cut and the impact of the rainy season in southern China are the “major reasons behind the fall,” Zhang Feng, a Hong Kong-based analyst with JPMorgan Chase, said Monday.
Still, China may from next month cut a tax rebate on exports of some low value-added steel products to between 8 percent and 9 percent from 11 percent, the Economic Information Daily said, citing unnamed sources. The lower rebates may curb sales overseas, boosting domestic supplies. Prices for cold-rolled sheets, used in cars and home appliances, slumped to 5,260 yuan from a high of 5,550 June 19.