Global Times | January 29, 2012 22:23
By Global Times |
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Jiangsu Province-based Shagang, the largest privately-owned steel manufacturer in China, said yesterday that it will raise its main steel product prices for early February bookings, which market players think may signal a steady start for the post-holiday market.
According to the steelmaker's announcement, prices of rebar and high speed wire rod are both up by 50 yuan ($7.90) per ton for early February bookings. As a result, the price of 16-25 millimeter diameter rebar is now at 5,120 yuan per ton; while that of 6.5 millimeter wire rod stays at 5,000 yuan per ton.
Hot rolled coils saw a price increase of 350 yuan per ton, while shipping plate has been raised by 300 yuan per ton.
Market players have taken the price increase as a good signal that the steel market may steadily rise after the Spring Festival period.
Since 2004, steel prices after the Chinese New Year have always registered a general upwards movement.
Although the total steel inventory in 26 major cities had risen for the fourth straight week to 14.36 million tons as of January 20, the level is still much lower compared with the pre-holiday period of last year.
Considering the low operation rate at steel mills this month, the inventory is estimated to see little change after the holiday, thus remaining at a relatively low level.
However, some market experts said that the snowy weather across the country may delay work restarting at many construction sites, resulting in curbed downstream demand at the beginning of February. As such the market is expected to see a weak balance between supply and demand, which is unlikely to provide any support to market prices.
Global Times
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