Jan 28, 2011
According to a statement issued by the China Iron and Steel Association (CISA) on Jan 25, steel prices in China will continue their upward trend in 2011, though some fluctuations will be seen and the increase will be at a slower rate than previous.
With China's Spring Festival beginning next week, there has been a certain slackening in transaction activity in the domestic steel market. The CISA indicated that, approaching the holiday, finished steel demand will drop and steel prices will be characterized by stability. After the Spring Festival, the CISA foresees that steel demand will recover and that finished steel prices will move in an upward direction.
As the Chinese government will adjust the country's domestic industrial structure and stabilize development in 2011, and also given the impact of uncertainty in the international market, the rate of Chinese economic development will slow down, domestic steel demand will drop, while raw material prices will follow a stable trend at high levels.
The CISA added that it was not optimistic on the prospects for Chinese finished steel exports, due to the Chinese government restrictions on products entailing high levels of energy consumption and pollution, and also because of international trade protectionism. (sourced:SteelOrbis)
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