Steel price to continue hiking in the short term

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Publish time: 24th April, 2011      Source: ChinaCCM
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According to the report released by MOFCOM on April 22, as the temperature inched up gradually, the construction steel market had stepped into a high season along with growing procurement orders from final customers, meanwhile the market also showed a third consecutive week growth for the steel price.

Last week(ended on April 17) the domestic steel price had risen by 1.3% week over week, for instance the price for the wielding pipe with the specification of 20*1.2, the rebar with diameter of 12mm and the carbon medium plate with the thickness of 10mm had raised by 2.0%, 1.9% and 1.9% respectively compared to prior week.

On the other hand, for last week the social inventories for the construction steel products came to 9.254 million t, dropping by 2.5% week over week and by 10.5% month on month. Besides some steelmakers'overhaul also influenced the steel output in March. According to the data issued by NBS, the domestic daily steel output averaged 1.9168 million t in March, which had decreased by 22800 t compared to February. Therefore the steel price is anticipated to continue hiking in the short run.