The domestic market of China steel enters a corkscrew

The current state of affairs on Chinese metallurgical plants can be described in one word - despair, writes Steelguru.

The production of steel and a metal rolling of ore, until recently purchased at the impressed price in the wake of the defects of demand, has become unprofitable. China’s domestic market did not accept the prices of steel recently raised by plants.

Local merchants expect a speedy price rollback, otherwise more or less voluminous transactions will not be concluded in the near future.

Inadequate profitability forced many metallurgical enterprises in China to give ready -made metal supply in installments and carry out it roll without an advance payment, just to sell at an affordable price.

Nevertheless, large metco -circuits continue to persist and convince the market and themselves that in the second half of April the long -awaited increase in demand for steel will happen. Regardless of these attempts to give the desired, Chinese steel market from this Monday froze in anticipation of a grand fall in a corkscrew ..