CSPI China steel price index weekly report
From July 8 to July 12, the China Steel Price Index (CSPI) dipped again after a slight recovery the previous week, hitting a new low since the beginning of the year. Both the long products and flat products price indices declined.
Haihao Group
Weekly Index Performance
During the week, the CSPI stood at 101.88 points, down 1.66 points from the previous week, a decrease of 1.60%. Compared to the end of last month, it dropped by 1.08 points, a decline of 1.05%. Since the end of last year, it has fallen by 11.02 points, a decrease of 9.76%, and on a year-on-year basis, it is down by 7.23 points, a decrease of 6.63%. The long products price index was 103.88 points, down 2.08 points from the previous week, a decline of 1.97%. Compared to the end of last month, it dropped by 1.32 points, a decrease of 1.25%. Since the end of last year, it has fallen by 12.23 points, a decrease of 10.53%, and on a year-on-year basis, it is down by 8.56 points, a decline of 7.61%. The flat products price index was 100.36 points, down 1.46 points from the previous week, a decrease of 1.44%. Compared to the end of last month, it dropped by 0.94 points, a decrease of 0.93%. Since the end of last year, it has fallen by 11.44 points, a decrease of 10.23%, and on a year-on-year basis, it is down by 9.43 points, a decline of 8.59%.
Price Changes by Product
Among the eight major steel products, prices declined across the board compared to the end of last month, with the largest drop seen in high-speed wire rod and the smallest in hot-rolled seamless pipes. Specifically, the price of 6mm diameter high-speed wire rod was 3,740 yuan/ton, down 56 yuan/ton, a decrease of 1.48%. The price of 16mm diameter rebar was 3,485 yuan/ton, down 44 yuan/ton, a decrease of 1.25%. The price of 5# angle steel was 3,713 yuan/ton, down 47 yuan/ton, a decrease of 1.25%. The price of 20mm medium and heavy plate was 3,709 yuan/ton, down 48 yuan/ton, a decrease of 1.28%. The price of 3mm hot-rolled coil was 3,757 yuan/ton, down 33 yuan/ton, a decrease of 0.87%. The price of 1mm cold-rolled sheet was 4,219 yuan/ton, down 49 yuan/ton, a decrease of 1.15%. The price of 1mm galvanized sheet was 4,836 yuan/ton, down 24 yuan/ton, a decrease of 0.49%. The price of 219mm diameter × 10mm hot-rolled seamless pipe was 4,860 yuan/ton, down 18 yuan/ton, a decrease of 0.38%.
Cost Analysis
According to data from the General Administration of Customs, the average price of imported iron ore in May was $105.80/ton, down $7.32/ton from the previous month, a decrease of 6.47%. Compared to the average price in December 2023, it decreased by $17.46/ton, a drop of 14.17%, and it was down $11.11/ton from the same period last year, a decrease of 9.50%. From July 8 to July 12, the domestic market price of iron concentrate was 958 yuan/ton, up 15 yuan/ton from the end of last month, an increase of 1.59%. Compared to the end of last year, it decreased by 152 yuan/ton, a decline of 13.69%, and on a year-on-year basis, it increased by 31 yuan/ton, an increase of 3.34%. The price of grade 10 coking coal was 1,923 yuan/ton, unchanged from the end of last month. Compared to the end of last year, it decreased by 670 yuan/ton, a decline of 25.84%, and on a year-on-year basis, it increased by 195 yuan/ton, an increase of 11.28%. The price of coke was 1,983 yuan/ton, up 12 yuan/ton from the end of last month, an increase of 0.61%. Compared to the end of last year, it decreased by 471 yuan/ton, a decline of 19.19%, and on a year-on-year basis, it increased by 79 yuan/ton, an increase of 4.15%. The price of scrap steel was 2,745 yuan/ton, down 10 yuan/ton from the end of last month, a decrease of 0.36%. Compared to the end of last year, it decreased by 244 yuan/ton, a decline of 8.16%, and on a year-on-year basis, it decreased by 193 yuan/ton, a decline of 6.57%.
International Market
In June, the CRU international steel price index was 197.5 points, down 5.3 points from the previous month, a decrease of 2.6%. Compared to the end of last year, it decreased by 21.2 points, a drop of 9.7%, and it was down 33.5 points from the same period last year, a decrease of 14.5%. The CRU long products price index was 205.1 points, down 1.3 points from the previous month, a decrease of 0.6%. Compared to the same period last year, it decreased by 14.5 points, a decline of 6.6%. The CRU flat products price index was 193.7 points, down 7.3 points from the previous month, a decrease of 3.6%. Compared to the same period last year, it decreased by 19.4 points, a decline of 9.1%. Regionally, in June, the steel price index for North America was 225.8 points, down 14.7 points from the previous month, a decrease of 6.1%. The steel price index for Europe was 214.5 points, down 3.2 points from the previous month, a decrease of 1.5%. The steel price index for Asia was 171.4 points, down 1.0 point from the previous month, a decrease of 0.6%.
During the week, the CSPI dropped again after a recovery the previous week, reaching a new low since the beginning of the year. The main reason for this decline is the market entering the traditional off-season for demand, compounded by increased rainfall in southern regions and flooding in many areas, further suppressing demand and exacerbating the supply-demand imbalance. Overall, steel prices are expected to remain weak and volatile in the short term.