Steep Fall in Steel Price/ Showing Dwindling Development of Chinese Industry

Chinese steel price has presented rollback since May. Wisco reduced the price of the steel products for July. The largest range of the price drop reaches NTD 500 per ton. Since then, major three steel industries in China— Baosteel, Ansteel, and Wisco all reduced the price of the steel products for July. According to the analyst, the status of the fall of the steel market price will predictably carry on. Meanwhile, recently influenced by the summer vacation in the international market, the international steel market also appears exhausted. The export orders of Chinese steel mills in June and July were decreased in comparison to the previous months, and so were the import quoted prices. In addition, the situations of the repeatedly rising of deposit reserve ratio by China Central Bank, the ever increasing price of the steel production, and the slow development of the downstream industries, all cause pressure to the consumption of the Chinese steel material.