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China’s steel prices to keep low in short run

It seems that steel prices in China keep falling these days despite of China’s new policy on stimulating domestic consumption, according to market source.

Since steel industry is normally affected by both internal and external markets, world’s financial crisis and some uncertain factors have forced steel prices down further inevitably.

Mills have fewer orders for fourth quarter and steel prices are predicted to remain a low level in short term. Cut of salary and lay-off are quite common among steelmakers.

Experts think the economic policies have only ensured a part of demand but not expanded market demand and the current market is still short of cash flow as result of high inventory. Steel industry may need a longer period of time to revive.Source:Yieh.com

Nov 25, 2008 15:58
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