It is reported that shortly after steel price rebounding for straight weeks, major steelmakers follow the tend and lift their ex-factory prices, Anshan Steel, Benxi Steel, Hebei Steel and Shagang all increases CNY 150 per tonne to CNY 350 per tonne to their recent and June ex factory prices among which construction steel prices meet the biggest raise.
As per report, Anshan Steel advances over CNY 300 per tonne to its HR/CR products and Benxi Steel lifts up CNY 200 per tonne to CNY 350 per tonne. Hebei Steel rose up CNY 140 per tonne to CNY 180 per tonne to its wire rods and rebar, CNY 100 per tonne to CNY 200 per tonne to its HR/CR products in mid May. Shagang adds CNY 70 per tonne to its later May rebar price and CNY 80 per tonne to the common carbon wire rod with the ex factory prices both over CNY 3500 per tonne. Apart from the above, Maanshan Steel puts forward an extra increase in its May prices too.
The media shows that local Government all enforced their supports to local steelmakers. On May 20th Wuhan Steel signed steel orders of 0.93 million tonnes with over 300 steel users in a meeting, hosted by Hubei Province and the mill has inked over 5 million tonnes of orders this year with local companies. The similar meeting also appeared in Anhui and Hunan Provinces.
However, traders are prudent toward the recent moves in mills and markets. Mr Li Ruiyong vice GM of Inner Mongolia Qianfang Steel Resource Co Ltd said "We have to decrease orders to lessen the loss, because the settlement price is lower than the ex-factory price in June."
Mr Xu Guohua GM of Beijing Zhihengda Commerce And Trade Co Ltd said "The steel stock is not much now and far less than the level in the beginning, the undercount shows that the steel stock in Beijing falls to some 0.2 million tonnes from the highest level of 0.5 million tonnes in earlier 2009. Meanwhile, the delivery to traders will be minified as the state 4 trillion investment absorbs many products directly from mills that will cut some steel supply to traders.”