Chinese Steel Market Continues to Grow in June, Skeptical of Higher Prices due to Sluggish Demand

The Chinese steel market has been rising since the beginning of June.
Anticipation of a recovery in construction demand due to the easing of real estate financing restrictions and the government’s directive to cut production have boosted futures steel prices, which in turn is driving the physical market.

Meanwhile, steelmakers, anticipating improved profitability, increased production again in June, and inventories of steel sheets in particular have remained at high levels.

As we enter the summer non-demand season, which is expected to be extremely hot, the market does not appear to be in a situation where the upward momentum of the market is gaining strength.

The hot-rolled coil market in the Shanghai area rose by 40 yuan in one week to 3,940 yuan per ton (about 78,000 yen, including tax), for a total increase of 160 yuan for the third consecutive week.