Steel Price Update – September 2012
US scrap prices to reflect little change in September
The US domestic scrap market has been extremely quiet ahead of the Labor Day holiday, but deals made early are pointing to a soft sideways trend.
Since the fourth quarter of last year, the Chinese steel market has remained sluggish due to weak global and domestic demand. In this context, China’s total crude steel output is expected to decline to 678.68 million mt in 2012, down 0.7 percent compared to 2011, indicating the first year-on-year decline in 31 years, according to the China Iron and Steel Association (CISA).
In 2011, China produced 695.5 million mt of crude steel, up 8.9 on year-on-year basis.
A number of Chinese steel producers have implemented cuts in their production. Meanwhile, some Chinese steel giants, such as Shanghai-based Baosteel and Hubei-based Wuhai Iron and Steel Co.(WISCO) have also suspended development projects amid poor steel market conditions.