China’s domestic steel prices decline by 3.27% in the last 3 weeks
Friday, 15 Jun 2007
It is known that under the China's curbing tax policy, China’s domestic steel prices have been descending over the last three weeks. According to statistics offered by China’s National Development & Reforms Commission by monitoring over 22 major markets last week, comprehensive price for the four major steel varieties averaged CNY 4142 per tonnes down by 1.1% WoW or down by 2% YoY.
Since the China’s ministry of finance announced to levy steel export tax of 5% to 10% May 21st 2007 effective from June 1st 2007 the domestic steel prices have posted three consecutive weeks decline an accumulated fall of 3.27%.
From May 21st to 27th 2007 the four major varieties comprehensive price averaged CNY 4226 per tonnes down by 1.3% WoW or up by 5.7% YoY. During the next week May 28th to June 3rd 2007 the price fell further to CNY 4190 per tonnes down by 0.9% WoW or up by 2.1% YoY. Till June 10th 2007 the average price stood CNY 140 per tonnes lowers than before the announcement of tax hike by 3.27% fall in percentage.
Last week wire rod, rebar, medium plate and HR/CRC prices were posted at CNY 3679 per tonnes, CNY 3654 per tonnes, CNY 4227 per tonnes and CNY 5008 per tonnes respectively down by 1.7%, 1.4%, 1% and 0.7% in WoW comparison or YoY rise of 1.6% and 5.6% and YoY fall of 4.1% and 7.6% respectively.
Last week, the international steel price index stood at 175.3 up by 1.7% WoW or 10.4% YoY suggesting widening gap between domestic and the overseas prices.
