Domestic steel prices began to plummet from last week after 17 weeks of continuous rally. CISA general secretary Shan Shanghua attributed the sharp fall to overcapacity, claiming the steel prices would continue to dip if mills fail to slash their output for the rest of the year. Some of experts argued, however, the condition has something to do with the current off-season during July and August. Others believed it is simply a routine response to the unusual climbs in the second quarter due to de-stocking associated with the government four trillion yuan investment package, and expected a further 20 to 30 percent rise in prices for the rest of the year.