China. Market expects steel prices to slide further in August

China. Market expects steel prices to slide further in August. Chinese steel market participants generally forecast a further decline in steel prices for August. Large-scale steelmakers are expected to cut prices, as steel plants are receiving fewer orders while production still remains high. Rumors going on Friday were that the Baosteel Group would cut its August producer prices for hot-rolled, pickling, and ordinary cold-rolled sheets and coils by 300 yuan a metric ton (tonne), and cut prices for thick plates by 600 yuan/tonne. According to monitoring by information provider Lange Steel, prices of six major steel products have dropped below their production costs, mostly by over 200 yuan/tonne, and the gap is still widening. Cutbacks in output by some steel plants, including some large-scale producers, have not had the effect of propping up steel prices, as overall there is high output nationwide. From January to May China's monthly crude steel output was consistently over 50 million tonnes, and June is estimated to see over 52 million tonnes of production, according to statistics from the China Iron and Steel Association. Meanwhile, stocks held by steel stockholders and end-users have been maintained at about 16 million tonnes, according to monitoring in 29 major Chinese cities by Lange. by Zhang Yuenan