China steel prices have dropped in spite of decreasing global output and easing oversupply, according to an article on the website of China Iron & Steel Association on Monday. The prices will fluctuate but largely remain low in the foreseeable future, said the article.
Starting from the second quarter, overall demand has been rising while demand from industries with high steel consumption was lower than expected, said the article.
At the end of May, the price of eight steel products monitored by CISA continued to drop. The China Steel Price Index is 101.83, 3.92 down from April, representing a margin of 3.71 percent. The index fell below 100 for the first time in June to the lowest level since June, 2009.
CISA said that the oversupply situation is going to persist as output remains high.