In July 2024, the Chinese steel raw materials market experienced a notable downturn amidst prevailing economic and seasonal factors. The key trends can be

summarized as follows:

1.   Weak Demand and Falling Prices:

Demand for steel raw materials, particularly iron ore and scrap metal, weakened significantly in July.

2.   Impact of Weather and Seasonality:

The summer months in China are characterized by high temperatures and increased rainfall, which disrupts construction and industrial activities. This seasonal effect was

particularly pronounced in July 2024, leading to reduced demand for steel products and subsequently, raw materials.   The decline in demand further pressured prices

downwards.

3.   Supply-Demand Imbalance:

The market was plagued by a persistent supply-demand imbalance, with supply outpacing demand. This was exacerbated by the continued production of steel despite

declining demand, leading to a buildup of inventory.

4.   Cost Reduction Measures by Steel Mills:

Faced with declining profits due to falling steel prices, steel mills implemented cost reduction measures. This included reducing raw material purchases, optimizing production

processes, and initiating maintenance shutdowns. These measures further reduced demand for raw materials and contributed to the overall weak market sentiment.

5.   Global Market Dynamics:

Global market dynamics also played a role in shaping the Chinese steel raw materials market. The global economy remained sluggish, with demand for steel and raw materials

generally weak.   Additionally, geopolitical tensions and trade disputes impacted international trade flows, adding to the uncertainty in the market.

Looking ahead to August, the outlook for the Chinese steel raw materials market remains challenging.