Beijing News has quoted traders saying that nine steel mills scaled up steel prices together on October 21st without the involvement of those leading companies such as Baosteel, WISCO and Anshan Steel. It is not a turning point for the steel market but the situation in demand and supply is still serious.
China biggest private steel mill Shagang Group issued on October 21st the price policy for the last ten days of October pushing up prices of wire rod by CNY 80 per tonne and of rebar by CNY 60 per tonne which is the first price lift following continuous falling since mid August.
Following hot in the heels are other eight steel mills including Jincheng Fusheng Steel Ltd and Shuicheng Iron & Steel Group which also have raised prices of around CNY 10 per tonne by and large for wire rod. Rizhao Steel in addition has lifted HR prices mildly.
These middle and small steel mills' moves are triggered by the spot and future markets rally which are directly affected by the world demands picking up. This round of price lifting moves lacks the presence of Baosteel, WISCO and other large mills. Just on the same day, Shougang and Benxi Steel launched its steel products ex-works prices for November delivery of which there are still some are scaled down including HR and galvanized steel with cut of CNY 300 per tonne to CNY 350 per tonne.
There is not sufficient drive for the market to go up now. Recently domestic steel market didn't see continued rally but fluctuation. Construction steel eyed a mild drop and rebar lost CNY 8 per tonne on average in major cities with Beijing observed the deepest of CNY 80 per tonne.
Source: Steel Guru
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