Monday, 14 Mar 2011
According to the report revealed by Ministry of Commerce of the People Republic of China, China steel price witnessed straight two weeks’ fallout down 1.6% compared to that of the previous week.
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
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