It is reported that Shandong pig iron prices are slipping further this week, driven by decreasing steel market. Steel making pig iron price is lowered by around CNY 100 per tonne from previous CNY 3850 per tonne to CNY 3900 per tonne and prices of ductile pig iron and casting pig iron are cut off CNY 200 from CNY 4800 per tonne.

Baosteel announced on September 19th, they will launch a price decrease on steel products for November shipment, with average margin of CNY 700 per tonne to CNY 800 per tonne, and some reduction even hitting CNY 2500 per tonne, which caused a sharp and unexpected reversal to domestic steel market. As a result, domestic plants have begun to cut their steel prices recently leading to an across-the-board steep price fall on September 23rd and 24th.

Steel prices plunge has added insult to injury of pig iron markets, making a further price reduction by most Shandong pig iron plants since the day before yesterday. So far, Shandong pig iron market is seen to nose-dive again.