BEIJING, June 3 (Xinhua) -- China's spot steel prices went down slightly last week, while its iron ore market is generally on the rise.
According to Mysteel, a steel information provider in China, the domestic spot steel price composite index closed at 147.35 last week, down 1.09 percent week on week.
Among it, the average price of mainstream rebar varieties in major markets was 4,132 yuan per metric ton (tonne), down 74 yuan week on week, that of the mainstream hot-rolled products in major markets decreased by 41 yuan/tonne to 3,967 yuan, while that of general steel plates went down 37 yuan/tonne to 4,048 yuan.
Against such backdrop, related products with low prices have enjoyed relatively good deals. Despite the high steel output in May, steel mills saw decreased profits due to the falling steel prices.
Meanwhile, the iron ore market was generally on a rise. According to the latest report of the Xiben New Line Stock Co., Ltd., a commodity information provider, the prices of iron and steel raw materials in China showed an uptrend on the whole in May.
Among it, the price of the domestic iron powder increased by about 50 yuan/tonne month on month, while the price of imported iron ore with a 62-percent purity grade rose by 7.15 U.S. dollars/tonne month on month.
Because of the slowdown in the demand for iron ore replenishment by domestic steel mills, the fundamentals of the iron ore market have shown the sign of weakness currently. Besides, the almost-unchanged iron ore stocks in related ports will bring high volatility to the iron ore market.
The incoming rainy season in south China will further weaken the steel market, making it difficult to change the market structure of strong supply and weak demand, according to analysis of related institutes. (Edited by Gu Shanshan)