Flat steel inventories in China rose in July on weak demand for hot-rolled coil (HRC) from the downstream industries, while plate producers increased production on firm demand from end-users.
Long steel inventories of rebar and wire rod showed decreases following mandatory production cuts in major steelmaking cities such as Tangshan, Shandong, Guangdong, Xuzhou, Wuxi and Changzhou, imposed in an attempt to control pollution levels.Domestic prices climbed in response to these production cuts, with both long and flat steel trading prices in most areas rising steadily throughout July.But export prices dipped because of the continuing loss in the value of the Chinese yuan, with sellers and traders still turning in profits despite offering US-dollar export cargoes at lower prices to entice buyers and conclude deals.The yuan was trading at 6.8311 yuan to $1 on July 31, compared with 6.6371 yuan to $1 on July 2.Hot-rolled coilExport prices were on a continual downward trend after inventories increased and weakness persisted in domestic demand. The falling yuan also exerted downward pressure on export prices.The Metal Bulletin fob China HRC index bottomed out...