Steel prices in China are expected to remain weak in December, due to sluggish demand, according to a survey conducted by lgmi.com, a steel information provider in China.
Since the beginning of 2015, falling demand has been a key word to describe the domestic steel supply-demand situation. On the one hand, the domestic demand has seen a negative growth. On the other hand, despite a sharp increase in steel exports, the gross volume of steel exports could not reverse the fall in domestic demand.
In the first three quarters of the year, the domestic crude steel output was down 2.1 percent, showing an improvement in fundamentals of the domestic steel industry, said Xu Liying, an analyst of the lgmi.com.
By November 19, of the hundreds of small and medium-sized steel mills in China, 33 enterprises have been overhauling facilities with a total of 63 blast furnaces involved, implying that crude steel output is expected to fall in the future, according to the lgmi e-commerce cloud platform.
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