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Along with the vibrating upward trend of the steel price in the domestic market, the large steel mills including Baosteel have decided to move up the cost price in February of year 2009. “The steel mills’ confidence back has warmed up the whole market,” said by a person of this industry during interview. At the time when the market stock is reducing, the traders are showing their enthusiasm for stocking more materials.
Since five times of price cut from last August, recently, Baosteel took a lead to raise the steel price for February, for example, the hot-rolled steel price has been risen by RMB100 to RMB200 per ton, the cold-rolled steel price by RMB300 per ton, the electrogalvanized products and pot galvanizing products by RMB340 and RMB250 per ton respectively, and the color coated products have been moved up as much as to RMB450, which is the biggest rise this time.
In addition the confidence back to the market and the tight market supply situation, the shortage of some products has calmed down the price increase trend and there are quite a few traders have started buying in steels for storage.
In 10 major cities of China, the 5.5m hot-rolled plate increased by RMB117 compared with last week and RMB274 compared with the same period of last year. Meanwhile, the domestic steel index keeps rising too, till Dec. 26th. 2008, LGMI domestic integrated steel and iron index had risen by 0.6%, which is 144.5 points, increasing by 2.8% compared with last month.
Since the “4-trillion-yuan (586 billion U.S. dollars) stimulus package” was published, the meeting held by Development and Reform Commission of China last Dec. clearly announced that the steel and iron industry will be one of the nine important industries that China is going to support. This news definitely set the steel and iron industry companies’ mind at ease. “The policy of export tax refund increase for the steel and iron companies put forward by the government recently, the takeover and storage plan for the high-end steels, and the plans for special funds of the scientific and technological innovations of steel and iron industry will join in brining spring back to the industry.” Mr. Chen Zhongtao, Senior Economist of Logistic Information Center, told the journalist. (Source: ex-custeel.com) |
