Aug 5 2010
Frbiz.com, one of China's leading B2B search platforms, discusses China's steel price trends.
Domestic steel prices are on the rebound, and this round of rebounding appears to involve all steel products -- the most prominent being for deformed bars and high steel wire rods.
Last week, the Dongguan market for deformed bars rose by more than 190 RMB/ton and high steel wire rods were up by more than 200 RMB/ton. The hot-rolled plate price has also increased 100-130 RMB/ton.
At the same time, raw steel production in iron ore and pig iron is also experiencing a rising trend. However, in Beijing, Shanghai, Guangzhou and other major steel markets, sales have not been hot.
The fundamentals of steel trade have not fully recovered, and now the situation can be regarded as a struggle for basic stability; however, huge fluctuations in the major steel industry have yet to be seen.
With iron ore, regulation of production has directly pushed up steel prices. Furthermore, in the iron ore trade, the pig iron trade is now made entirely with cash transactions, showing that the flow of materials is fast and the market has more money in circulation. The price should naturally go up.
In the second half of 2010, iron and steel industrial restructuring and production capacity will be accelerated. Recently, many steel mills have stopped production due to renovations, which is also a major factor pushing up steel prices.