Features
CRU: Cisa calls on steel makers to reduce stocks
Written by CRU
May 14, 2024
The China Iron and Steel Association (Cisa) has urged steel producers to cut back on record high inventories while the sector struggles with oversupply.
In late March, stocks were 18.34 Mt, up 11% year-on-year and an all-time high for the period.
Though crude steel output was 1.9% lower y/y at 257 Mt, apparent consumption fell by a greater amount, 4.6%, Reuters news agency reported Cisa as saying.
A protracted property crisis and slowing infrastructure demand growth has reduced demand for steel in China.
This article was originally published by CRU. Learn more about CRU’s services at www.crugroup.com.
Latest in Features
Final Thoughts
Steel equities and steel futures fell hard after news broke earlier this week that the US and Mexico might reach an agreement that would result in the 50% Section 232 tariff coming off Mexican steel. The sharp declines didn’t make much sense, especially if, as some reports indicate, Mexico might agree to a fixed quota. They didn't make sense even if steel flows between the US and Mexico remain unchanged.
SMU Survey: Mill lead times tick higher after late-May lows
All five of the averages for sheet and plate mill lead times tracked by SMU extended moderately this week, according to buyers responding to our latest market survey.
SMU Survey: Mills less negotiable on sheet prices, buyers say
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet products than they were in recent weeks, but remain open to bargain on plate prices.
Dodge Momentum Index recovered in May
Following three months of little to no growth, the Dodge Momentum Index (DMI) increased in May, according to the latest data released by Dodge Construction Network
SMU Community Chat: Tanners explores if US steel industry still needs imports
The US steel industry is edging closer to independence from imports, and it may only take one more mill to tip the scales, according to Timna Tanners, managing director at Wolfe Research.