The recent decline in China’s steel prices has had a wide impact on the international market, which can be analyzed from the following perspectives: 1. ** Pressure from global oversupply ** China is the world’s largest steel producer, accounting for more than half of global steel production. If China’s domestic steel prices fall, steelmakers may try to mop up excess capacity by ramping up exports. This will lead to an increase in the supply of steel in the global market, exacerbate the oversupply in the international market, and lower global steel prices, especially in Asia and developing countries. 2. ** Steel exports increase, leading to pressure on international prices ** As Chinese steel prices fall, international buyers may be more inclined to buy lower-priced Chinese steel, which could lead to an increase in Chinese steel exports. This will further put pressure on steel prices in the international market, especially for other steel producing countries that are less competitive. Some steel producers, such as those in India, South Korea and Europe, may face increased market competition and price pressure. 3. ** Ripple effects in commodity markets ** Steel prices are often linked to other commodity markets, particularly raw materials for steel...

The impact of the US interest rate cut on the steel market can be analyzed from multiple perspectives, mainly including the following aspects: 1. ** Lower borrowing costs and boost investment ** Interest rate cuts reduce financing costs for companies, which is particularly important for the steel industry. Steel production is usually a capital-intensive industry, involving a large amount of investment in equipment and infrastructure. After the interest rate cut, the loan interest rate of steel enterprises is reduced, and the borrowing cost is reduced, which makes it easier for enterprises to finance investment activities such as equipment upgrading and production expansion. Industries with high demand for steel, such as the construction industry and the automotive industry, will also expand investment and further stimulate steel demand. 2. ** Promote real estate and infrastructure development ** Lower interest rates tend to spur growth in the property market and infrastructure investment, as lower rates make it easier for developers and governments to get financing. Real estate and infrastructure construction are the main areas of steel consumption, so an increase in such activity will drive up steel demand, which in turn will support steel prices. 3. ** The dollar depreciates, boosting exports **...

Guangdong Province-based Zhongnan lron & Steel Co., a subsidiary of China Baowu Group, has inked a strategic cooperationagreement with China Minmetals Corporation, according to local media reports.Accordingly, both parties will cooperate deeply in the areas of raw fuel supply,logistics and supply chains, and finance, in order topromote the common development of both sides and jointly build a steel supply chain service network. Contact WhatsApp: 86 13003387581

China has declared an end to capacity expansions in steel production and is no longer allowing any new announcements for replacement capacities. And prices for stainless steel in China have stabilised and demand is rising.

In 2024, the international stainless steel market continues to face multiple challenges. Despite the relatively stable performance of the Chinese market, stainless steel demand in the rest of the world remains subdued. Stainless steel production in the United States declined by 13.5% in the first half of 2023, while global stainless steel scrap smelting production also declined by 2%. As an important raw material for stainless steel, the price of nickel has fallen by 48% in the past year, further suppressing the upside of stainless steel prices [28†source] [30†source]. This market situation is mainly affected by the imbalance between supply and demand. Due to the market recovery after the novel coronavirus outbreak is not as expected, especially weak consumer demand in major economies such as the United States and Europe, and the continued low nickel price, resulting in stainless steel prices continue to be under pressure for most of 2023. Despite some inventory recovery in some regions, inventories of long-form products remain high, indicating that demand has not fully recovered [30†source]. In addition, the reduced trust in nickel price fluctuations within the industry has made many stainless steel producers and traders cautious about the market outlook. In response to these...

  Analysis review This week, the total inventory of stainless steel was 108.49 tons, a decrease of 0.47% compared to last week. Among them, cold-rolled inventory decreased while hot-rolled inventory increased. Upstream: Due to the recent increase in delivery resources from Norway and Sumitomo, the overall transaction of refined nickel spot goods has been poor, resulting in a downward trend of various brands’ spot price premiums. The overall mining quotes in the Philippines remained firm, while the resource supply in the Indonesian nickel ore market remained tight. The benchmark price for domestic trade in Indonesia has risen, and it is expected that nickel iron prices will continue to be stronger in the short term. From the supply side, there were not many arrivals in the market, and spot prices had rebounded within the week. Some low-priced early orders had gradually been picked up, but downstream procurement was still cautious, and the actual order volume was limited. Therefore, the national stainless steel social inventory in this period showed a narrow downward trend. Steel mills had high expectations for the traditional peak consumption season of gold September and silver October, and there is an increase in production scheduling in August. Import and...