Price rises in the domestic steel market over the past week and better sales of some steel products have attracted the attention of market watchers, reports Mysteel.com. Analysts say it is too early to tell whether the moderate price rises reflect a market fluctuation or the beginnings of a longer term recovery.
Mysteel reports that steel products used in construction have been registering a steady climb in the northern cities of Beijing, Tianjin and Shenyang, where the price has gone up by around 100 yuan (US$14.66) per ton. The price of steel plate went up by 50 yuan (US$7.33) per ton in Chengdu and Chongqing, and hot and cold rolled steel rose by around 100 yuan (US$14.66) per ton in Beijing, Tianjin, and Fuzhou.
After a modest increase, the price of rebar in Shanghai is stable at 3250 yuan (US$476.54) per ton. Over the past week 24 rebar plants and 17 coil plants have raised their factory prices. Analysts say the fine weather has helped boost demand and some insiders say they see sales volumes increasing after the May Day vacation.
The price of plain carbon steel has been fluctuating between 3200 yuan (US$469.21) and 3280 yuan (US$480.94) per ton for the past five weeks while the price of 4.75mm hot rolled steel rose sharply at the weekend after a prolonged period of sluggishness.
For more information, please consult the Chinese coverage at: http://www.cs.com.cn/xwzx/05/200905/t20090503_1882475.htm.
(China.org.cn by Maverick Chen, May 4, 2009)
