Steel prices under pressure: CISA calls for market self-regulation
The Chinese Metallurgical Association (CISA) is calling on the country's steel mills to self-regulate steel production and stabilize prices for steel products. This is reported by SteelOrbis.
CISA President Zhao Minghe said at the Association's event that in the near future, the main contradiction in the country's metallurgy industry will remain the imbalance between supply and demand. He called on steel companies to take various measures, focus on strengthening self-discipline and promoting stable, orderly and high-quality development of the industry.
According to the latest monthly CISA report, according to Mysteel, steel prices in China are primarily driven by supply dynamics amid weakening demand for rolled products and a sufficient supply of raw materials.
The association noted that domestic demand for steel has weakened further since July due to the increased influence of seasonal weather factors. Steel production in China also declined in early July. Daily smelting volumes among CISA member plants averaged 2.1 million tons per day, which is 1.5% less than the average at the end of June.
The association warned that global trade will face increasing obstacles in the second half of this year, in particular due to uncertainty about US trade policy and geopolitical tensions, which could increase pressure on the global economic recovery.
The CISA suggested that, amid global uncertainty and insufficient domestic demand, the Chinese government may introduce a gradual stimulus policy during the third quarter to meet annual GDP growth targets.
In addition to rationalizing production, Chinese steelmakers were advised to monitor changes in global steel demand and the impact of trade protectionism in order to adjust their export strategies to reduce risks.