Tuesday, November 22, 2011

Domestic steel costs displaying explosive rise

Based on widely-known metal info organizations "My iron and steel" to the newest marketplace evaluation, said within the last week, impacted from the new benchmark value of an annual international iron ore rose 65%, and domestic steel metropolis, rather reduced stock levels as well as other components affect, the domestic steel characterised by an explosive rally. Construction metal, plate, cold and hot roll sheet metal items in plenty of metal and also of big gains happen to be over 400 yuan. It really is noteworthy which the transaction took location between traders, primarily inside the real end-user's transaction volume is not significant.



Based on "My iron and steel" surveillance, previously week, the significant steel market place precise kinds of performance: building metal rates normally rose sharply, Shanghai, Hangzhou, Changsha, Nanchang along with markets rose 400 yuan per ton metal; plate prices rise, Shanghai, Hangzhou, Jinan, Hefei along with other places rose over 450 yuan per ton steel; cold and hot coils prices rise, Shanghai, Nanjing, Qingdao, Nanchang, cold rolled coils as well as other locations rose over 500 yuan per ton metal; massive t price of an typical rise in profile of 200 yuan.



In accordance with the analysis, the domestic development steel costs rose over 300 yuan per ton, the area 17. Based on incomplete figures, throughout the Spring Festival holiday, right after a total of 126 domestic rebar producers raised their costs, Guangzhou Iron and Metal, Shaoguan Iron & Steel, Wing metal and many other rod mill elevated costs 2-3 times. Another 105 corporations elevated their rates for wire rod production, water, steel, metal and other steel-ping elevated rates certain times. Shanghai, Guangzhou and other key markets postganglionic rebar inventories lower than expected, industry confidence, thus greatly increased. Changsha region big rebar rates have been by 5,000 tons mark, up to 5150 yuan.



Next affect the domestic building steel market place trends of aspects, including: First, yearly contract iron ore prices up 65% of the price of the transfer has not yet fully in accordance with industry expectations. Your second is basically the current marketplace transactions among the traders, clerks and also other practical metal unit has been fully admission purchases. Third, around the stock up, but up speed and quantity were significantly lower than in previous years ago. Fourth, metal mills and traders are optimistic and pig iron, billets and also other raw materials prices are still powerful. The estimated building steel rates will continue to rise, but the gains will tend to decrease.



Plate costs also rose sharply in the last week, China had 23 plate manufacturers adjusted ex-factory cost, which increases rate of Shougang Metal, etc. to reach over 300 yuan for each ton, but the real market volume was small, the basic transaction between the traders, the actual volume into the hands of the few end-users. Hot and cold roll plate prices are rising sharply, including cold-rolled items rise faster than hot-rolled items, stock is rather reduced is the main cause of cold-rolled product prices. Inside a week there were 11 rod mill in Feb raised the ex-factory value, Baotou AM the biggest increase four hundred yuan per ton. Volume in the cold and hot markets, most of the transactions in between the traders.

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