Iron market report February 2012

In early February, with raw materials price holding relatively firm, pig iron price virtually hit the bottom and iron plants found shrinking profits with few intentions to lower the price further and steel mills found it difficult to buy materials at a low price. In order to guarantee a normal operation, some steel mills of South China were forced to lift the purchase price by about RMB30-80/t with some market followed to increase by RMB10-30/t in Xuzhou and Xinjiang etc. However, the price increase was short-lived.Asian Metal Copyright However, the price increase was short-lived.Asian Metal Copyright Downstream market demand was failed to substantially rebound with sustainable weak steel market keeping weak and soft iron ore price.Asian Metal CopyrightIn early February, with raw materials price holding relatively firm, pig iron price virtually hit the bottom and iron plants found shrinking profits with few intentions to lower the price further and steel mills found it difficult to buy materials at a low price.Asian Metal Copyright Steel companies started to cut the purchase price of pig iron from the latter part of February in order to reduce production costs and some steel mills even suspended the purchase of pig iron while sales of iron market still remained sluggish.Asian Metal Copyright In order to guarantee a normal operation, some steel mills of South China were forced to lift the purchase price by about RMB30-80t with some market followed to increase by RMB10-30t in Xuzhou and Xinjiang etc.Asian Metal Copyright