CISA: Domestic steel prices to further increase in 2011
2011-01-27 09:35:06 【Print】
BEIJING (Asian Metal) 27 Jan 11 – According to a report of China Iron & Steel Association (CISA) released on 25th January, prices of finished steel in China will move up further in 2011 boosted by upward price trend of raw materials despite the weak demand.
The report disclosed that with the continued depreciation of US dollar, prices of dollar-denominated raw materials show the uptrend, leading a higher cost for finished steel. While the demand will decrease further mainly due to two factors. The first one is that China will put more attention on the transformation of economic development pattern in 2011, slowing down the economic development rate to some extent.
The second one is the frustration in export. Influenced by the protectionism in international market as well as the domestic controlling policy on exporting resource-dependent products, it is hard for finished steel to be exported, adding stock pressure in domestic steel market.
In addition, CISA once released statistics that total stock of finished steel was 13.24 million tons at the end of last December, increasing by 1.36% and 4.73% month on month and year on year respectively.
Therefore, CISA suggests that domestic steel mills should endeavor to reduce cost and improve efficiency to gain more profit in 2011.
The report disclosed that with the continued depreciation of US dollar, prices of dollar-denominated raw materials show the uptrend, leading a higher cost for finished steel. While the demand will decrease further mainly due to two factors. The first one is that China will put more attention on the transformation of economic development pattern in 2011, slowing down the economic development rate to some extent.
The second one is the frustration in export. Influenced by the protectionism in international market as well as the domestic controlling policy on exporting resource-dependent products, it is hard for finished steel to be exported, adding stock pressure in domestic steel market.
In addition, CISA once released statistics that total stock of finished steel was 13.24 million tons at the end of last December, increasing by 1.36% and 4.73% month on month and year on year respectively.
Therefore, CISA suggests that domestic steel mills should endeavor to reduce cost and improve efficiency to gain more profit in 2011.
