The average price of hot rolled coil in China ended last week at 4,175 yuan/ton ($618), which is 75 yuan (2%) more than a week ago. Prices have now increased for three straight weeks. On a year-on-year basis, prices are down by 1,695 yuan (-29%).

Stockpiles of flat and construction steel products at warehouses in major cities in China ended last week at approximately 14.2 MMT. This is 300,000 tons (-2%) less than a week ago and is down year-on-year by 1.7 MMT (-11%). Stockpiles have now declined for six straight weeks after previously rising for eight straight weeks.

While the global economy certainly continues to suffer, the Indian economy continues to fare quite well. A record amount of steel continues to be produced in India this year, India has been dispassionately purchasing discounted energy-inducing commodities from Russia, and the nation’s overall electricity production and thermal coal-derived remain quite strong. In addition, India’s industrial production has continued to expand and the most recently released data for May showed the strongest growth reached all year. While economic conditions in much of the world continue to deteriorate, it is at least helpful that the Indian economy has remained strong.