Dim prospects for steel in H2

Despite the recent recovery in steel prices, a senior executive of Henan's largest steelmaker Anyang Steel, pinned little hope on the future market. He owed much of the resilience to flarebacks to the 14-week long slump in the steel prices across the country.

77 principal steelmakers attained a combined profit of 6.25 billion yuan in June, down 37.77 percent from 10.04 billion yuan in May; and daily crude steel output fell from 1.81 million tons to 1.79 million tons. He asserted the steel prices won't stay firm for long unless the problem of overcapacity is properly managed. Slack seasonal demand would put further strains on steel stocks in the third quarter. According to the CISA, the domestic steel prices will likely follow a modest, downward path in the rest of the year.

Several days ago, Baosteel, Ansteel and Shougang made decisions to remarkably lower their prices for August shipment.