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Several major steel mills have raised the price. The steel price remains to be observized

2009-6-30 9:21:36

       Along with the prices upward in the domestic market , some major steeel mills including Baosteel will raise the price in February next year. The confidence of the steel mill to the market has led to the warming of the market. A person has revealed to the reporter that the enthusiasm for hoarding goods of the intermediate has increased ,at the same time the storage of the market is reduced. But some experts also pointed out that the supply of resources in the steel mills was not enough and the current market prices is "measurelessly space up" . whether the the steel mill can continue is still needed to observe.

       According to the reporter, the price of the steel mill is declining 5 times since August. The hot products are increasing by 100 RMB to 200 RMB per tonwhile the cool products are increasing by 300 RMB per ton. The plated Zinc products are increasing by 340 RMB to 250 RMB. The daubed products are increasing largely by 450 RMB.

       Some products are out of stock in the case of short supply. The manager of the Consultation Department of Lange Steel Research Center, Li,Ma said that some steel trader began to purchase some steel to store.

      A steel trader from Tianjin said that 鈥 Many steel trader including me has began to store up products because some products are hard to purchase.鈥

      The average price of 5.5 mm hot casting coil plank is reaching 3666 RMB in ten cities, increasing by 117 RMB compared to last week, increasing by 274 RMB compared to last month. At the same time the steel index in the market is continuously increasing.The LGMI steel index is increasing by 0.6 percent. Compared by last month, it is 2.8 percent increasing.

     A person from steel mill in HeBei Province said :鈥滱t present, the price of ironstone is decreasing, leading to the decrease of the producing cost.

     He also said :鈥 70 percent of the steel mill started to produce again in Tangshan.鈥

     The steel industry has become one of the nine industries for propping up.

Zhongtao,Chen, a senior economist in the Logistics Information Center, said that the industry was picked up because of the recent proposal to increase the iron and steel industry, as well as the export tax rebate scheme for high-end steel and iron and steel industry and the scientific and technological innovation, such as special funds for the project.

     "But now the domestic macro-economy in the short term --downward trend will not change, and international demand for steel is still falling, which means that the iron and steel industry in the short term is very difficult to recover ." Li Ma expressed his anxiety : 鈥 Accompanied by an increase of the supply in the market, the 'measureless air up' weak balance will be broken.  China's current steel production has been used for a large part of exports. If the exports continue to decline next year, the iron and steel industry will face a very grim situation.

      In fact, the danger signals have been very obvious, the price of the plate in other markets continues to decrease except China. In December, the price of the plate in the United States Central fell by an average of 165 U.S. dollars / ton. While in Germany, end-user including automobiles, household appliances, has canceled the signed orders with the distributors and steel service center.Although many important German steel has take the action to reduce output , the inventory levels remain high.

      Data from Chinese customs shows that China's exports of steel products in November has been reduced , compared to the volume of last month. South Korean exports dropped to 892,000 tons from 524,000 tons, reaching 41.2 percent decline; the EU's export volume to 623,000 tons from 279,000 tons, reaching 55.1% decline.

      Li Ma told to the reporter that the real estate industry is the greatest driving force for development of the iron and steel industry. At present, the rate of housing left idle is very high. If the real estate industry continues to slump, it is very difficult to pick up the iron and steel industry. "He said that the current bubble has disappeared. It depends on the supply in the market to see whether the price in the market would be stable. He has intended that the real stability would be in the second half of next year, returning to a rational range.
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