China's total crude steel demand for
2012 has been projected to grow 4 per cent to 700 million tons even as Chinese
steel mills remain cautious to buy the commodity, the China Iron and Steel
Association (CISA) said on Thursday.
Spot iron prices held steady on
Thursday, but it may not be enough to promote a buying binge in China.
“Enterprises are facing
increasing operating risks, under pressure from a variety of factors such as
rising costs, falling demand and difficult and expensive financing,” Zhu
Jimin, chairman of CISA and also head of Shougang Group, said in a speech
during CISA's annual meeting. Shougang Group is one of the country's biggest
steelmakers.
“I don't think anyone would
make any big purchases from the spot market this week, but I expect buying to
increase a little on Jan. 10 as they seek to replenish stocks ahead of the
Chinese new year,” Reuters News quoted an unidentified Shanghai-based
trader as saying.
The trader said there are currently
some steel mills with stocks enough to last for 30 days, although there are
some good only for a week. “They will have to buy to keep running.”
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