Haihao Group monitors fluctuations in the steel market and shares insights with clients

China Steel Price Index (CSPI) Weekly Report (June 3 – June 7)

From June 3 to June 7, the domestic steel price index in China continued to decline, with an increased rate of decrease. Both the long product price index and the flat product price index experienced drops.

During this period, the China Steel Price Index (CSPI) stood at 105.24 points, a week-on-week decrease of 1.79 points, or 1.67%. Compared to the end of last month, it also fell by 1.79 points, or 1.67%. This is a 6.78% decrease from the end of last year, down by 7.66 points, and a year-on-year drop of 1.34%, down by 1.43 points.

Long Product Price Index: 108.10 points, down 2.81 points (2.54%) week-on-week; down 2.54% from last month; down 6.90% from last year.

Flat Product Price Index: 103.25 points, down 1.26 points (1.20%) week-on-week; down 1.20% from last month; down 7.65% from last year.

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Price Changes by Product Type

Compared to the end of last month, prices of all eight major steel product categories decreased. The largest drop was seen in rebar, while the smallest decrease was in hot-rolled seamless pipes. Here are the specific details:

6mm High Line Wire: ¥3912/ton, down ¥109/ton (2.71%)

16mm Rebar: ¥3643/ton, down ¥104/ton (2.78%)

#5 Angle Steel: ¥3853/ton, down ¥73/ton (1.86%)

20mm Medium Plate: ¥3859/ton, down ¥44/ton (1.13%)

3mm Hot Rolled Coil: ¥3869/ton, down ¥58/ton (1.48%)

1mm Cold Rolled Thin Plate: ¥4349/ton, down ¥49/ton (1.11%)

1mm Galvanized Sheet: ¥4903/ton, down ¥17/ton (0.35%)

219mm x 10mm Hot Rolled Seamless Pipe: ¥4762/ton, down ¥14/ton (0.29%)

Cost Analysis

According to the General Administration of Customs, the average price of imported iron ore in May was $105.80/ton, down $7.32/ton (6.47%) month-on-month, down $17.46/ton (14.17%) from December 2023, and down $11.11/ton (9.50%) year-on-year. From June 3 to June 7, the price of domestic iron concentrate was ¥981/ton, down ¥8/ton (0.81%) from last month, down ¥129/ton (11.62%) from last year, but up ¥101/ton (11.48%) year-on-year.

Coking Coal: ¥1978/ton, up ¥15/ton (0.76%) from last month; down ¥615/ton (23.72%) from last year; up ¥350/ton (21.50%) year-on-year.

Coke: ¥1979/ton, down ¥25/ton (1.25%) from last month; down ¥475/ton (19.36%) from last year; up ¥106/ton (5.66%) year-on-year.

Scrap Steel: ¥2848/ton, down ¥30/ton (1.04%) from last month; down ¥141/ton (4.72%) from last year; up ¥10/ton (0.35%) year-on-year.

International Market Overview

In May, the CRU International Steel Price Index was 202.8 points, down 2.8 points (1.4%) month-on-month, down 15.9 points (7.3%) from last year, and down 36.4 points (15.2%) year-on-year.

CRU Long Product Price Index: 206.4 points, down 2.9 points (1.4%) month-on-month; down 12.8% year-on-year.

CRU Flat Product Price Index: 201 points, down 2.8 points (1.4%) month-on-month; down 16.4% year-on-year.

By region, the North American index was 240.5 points, down 10.4 points (4.1%) month-on-month. The European index was 217.7 points, down 4.1 points (1.8%) month-on-month. The Asian index was 172.4 points, up 2.4 points (1.4%) month-on-month.

Market Outlook

As of the first week of June, domestic steel prices continued the downward trend seen at the end of May. In terms of supply, the recovery of steel production in May improved month-on-month, but the market remains oversupplied. On the demand side, both actual demand and market expectations have significantly improved compared to earlier periods. Moving into June, the potential for further demand improvement is limited. Additionally, policies to control crude steel production are expected to be formulated and implemented across various regions, which will provide some support for steel price increases. Overall, steel prices are expected to continue fluctuating in the short term.

Haihao Group: Your Partner in the Dynamic Steel Market

At Haihao Group, we keep a close watch on raw material market fluctuations and share these insights with our clients. This ensures that our customers are well-informed and can make strategic decisions. Our commitment to quality and customer service positions us as a reliable partner in the steel industry.