There are hopes that the Chinese steel market is expected recover in the second quarter of the year, driven by the government's RMB 4 trillion investment plans.
Many mills have restarted production and many construction projects are under way; steel prices have become more stabilised and some have rebounded dramatically. However, traders are complaining about a lack of new orders.
Both Baosteel and Wisco have increased their benchmark prices for March, though according to analysts the price rebound is mainly due to a shortage in stocks, increasing raw material prices and the launch of the government recovery package.
However, Chinese mills are losing their competitive edge in the export market due to unattractive prices.
Source: Yieh
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