MYSTEEL: Market tussle to constrain China steel prices in July

Chinese steel prices will find upward momentum from the central government's likely introduction of new economic stimulus policies this month, though the steel market's weakening fundamentals threaten to be a drag, Mysteel's chief analyst Wang Jianhua predicts in his latest monthly outlook. Last month, domestic steel prices had rebounded overall, generally recovering all the ground lost in May, Mysteel's survey showed.

As of June 30, China's composite steel price under Mysteel's assessment was at Yuan 4,059/tonne ($559/t), higher by Yuan 156.7/t or 4% from May 31. The price recovery was driven mainly by the bullish market sentiment, according to Wang. During last month, a package of incentive policies had been introduced