July 1, National Development and Reform Commission forecasted that Steel price would continue down with limited margin in near future. An official from NDRC said “Chinese government will go on with measures aiming at curbing the excessive rise in property price. This, to a certain degree, restrains demand for construction steel products.
” An official said the average steel price for 22 main cities stayed at 4838 yuan per tonne down by 3.7% month on month but up by 29.4% year on year. The official said “Except Chinese government’s macro control, the decrease in steel exports caused by credit crisis and international trade disputes also contributes to the falling steel price.”
He added that as top three miners asked for further rise in benchmark price for iron ore in Q3, steel mills’ costs would remain on a high level which would prevent steel price from diving too much. Backward capacities would be closed down before Q4 according to Chinese government requirement. This would help stabilize domestic steel market
Source: en.sxcoal.com
Leave a Reply