Chinese ECCS Prices Fall in August as Oversupply and Weak Export Demand

The Chinese market for Electrolytic Chromium Coated Steel (ECCS) faced considerable downward pressure with a *.** price decrease in August ****, to $***/MT FOB Shanghai, while feedstock costs were still rising. The context for the decision-making includes the intensity of decline in ECCS throughout the last *-months has been continuous, from March&#**;s peak of $***/MT to August&#**;s level of $***/MT, equating to a decline of **.**. In addition to the fact that there has been prolonged decline from April&#**;s level of $***/MT and May&#**;s level of $***/MT through June&#**;s $***/MT, and July&#**;s level of $***/MT, has clearly demonstrated continued structural oversupply hijacking cost-support characteristics within the specialty steel space.

Key Takeaways:

• Chinese ECCS prices fell *.** month-on-month to $***/MT, continuing *-month decline from $***/MT
• Cold Rolled Coil feedstock surged from June&#**;s $***/MT trough to August&#**;s $***/MT (+*.**)
• Italian automotive sales collapsed **.** from July&#**;s ***,*** to August&#**;s **,*** units
• Mexican automotive...