It's learned from MEPS International: Chinese steel prices have continued to spiral downwards in June

According to MEPS, the average decrease is around 5 percent, month-on-month. The reduction has occurred despite a recent rally in iron ore prices. This situation has accelerated the deterioration in margins, with losses, throughout the supply chain, mounting.

Oversupply continues to exert negative pressure on steel selling values. Demand from downstream sectors has been curtailed by unfavorable weather conditions. This has resulted in only limited transactions taking place in the market. Furthermore, liquidity has tightened due to the approach of the quarter and half year-ends.

Heavy rains and high temperatures have hampered construction activity and, consequently, curbed purchasing of steel products used in the sector. Confidence in the market is lacking and a decline in billet prices has dampened sentiment further. Supply remains in excess of demand.