Iron Market Report December 2012

Purchase volumes of steel mills increased after decline in December with overall slight adjustment.Asian Metal Copyright Steel mills may hike purchase prices steadily for January by RMB100t due to the highly increased prices from iron plants at the end of December.Asian Metal Copyright Some steel mills maintained converters and stopped purchasing pig iron in the first half a month due to decreased prices of steel and raw materials; meanwhile, some steel mills consumes inventories and suppress raw material procurement with heavy wait-and-see stances.Asian Metal Copyright On the second half a month, raw material prices kept increasing with optimistic attitude from participants; steel mills kept hiking sales prices in late December due to high costs, added by rushing rebar futures and steel billet, steel mills could hardly get materials at low prices as iron prices seemed to increase with no low prices movements; some steel mills resumed procurement, so they hiked purchase prices to get resources.Asian Metal Copyright On the second half a month, raw material prices kept increasing with optimistic attitude from participants; steel mills kept hiking sales prices in late December due to high costs, added by rushing rebar futures and steel billet, steel mills could hardly get materials at low prices as iron prices seemed to increase with no low prices movements; some steel mills resumed procurement, so they hiked purchase prices to get resources. Steel mills may hike purchase prices steadily for January by RMB100/t due to the highly increased prices from iron plants at the end of December.Asian Metal Copyright Steel mills may hike purchase prices steadily for January by RMB100t due to the highly increased prices from iron plants at the end of December.Asian Metal Copyright