9,367.77 TRY BIST 100 BIST 100
4.79 CNY CNY CNY
34.56 USD USD USD
36.19 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
41.35 TRY Interest Interest
74.24 USD Fossil Oil Fossil Oil
30.90 USD Silver Silver
4.09 USD Copper Copper
100.80 USD Iron Ore Iron Ore
365.00 USD Shipbreaking Scrap Shipbreaking Scrap
2,982.57 TRY Gold (gr) Gold (gr)

What's going on in the Chinese market?

After the second half of 2022, when steel prices in China began to decline, steelmakers hoped for a better situation this year, while steel and raw material prices in the world markets decreased significantly since the end of March.

What's going on in the Chinese market?

Çin'de çelik fiyatlarının gerilemeye başladığı 2022 yılın ikinci yarısının ardından çelik üreticileri bu yıl daha iyi bir durum olmasını umut ederken, Mart ayı sonundan itibaren dünya bazında piyasalarda çelik ve hammadde fiyatları önemli düşüş yaşandı.

Scrap usage among 211 steelmakers fell to a three-month low of 19.94% as of June 1 after the Chinese New Year holiday. The scrap rate continues to decrease by 0.17% and 0.65% on a weekly and monthly , respectively. Since March, total scrap consumption has reached 2.19 million tons, decreasing by 0.5% weekly and 3.5% monthly. This problem, along with falling prices of raw materials such as iron ore and coke, led to the loss of cost support and opening up space for further discounts. In addition, the continuous decline in futures prices in the Chinese market made exporters and foreign buyers cautious.

On the other hand, billet prices increased in the Chinese domestic market. Prices rose from 468 $/t to 480-493 $/t.

Import price increased from CFR 420-430 $/t to 460 $/t. Billet CFR price increased +5 to 505 $/t.

Average rebar FOB exports in China last week increased from the previous week to 565 $/t from 550 $/t.

As a result, while statistics show an increase in steel production in China, this growth was met with low demand, which increased the risk of oversupply in the market. Also, while production is still profitable, manufacturers do not want to reduce production and at the same time, we are approaching a period of reduced demand. It is expected that steel demand will tend to decrease in June-July due to seasonal factors. However, seasonal demand growth from August to September is unlikely to be strong given the state of the housing market.

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