According to the latest market report, China’s domestic steel market is booming I last 10 days and the situation is especially good for construction steel, which has experience sharp price rise. Generally, price all kinds of plates is increasing, while price of sections is largely stable.
The recent storage condition
Market statistics have shown that the overall storage within China’s domestic market is around 14.08m tonne, down by 3.53% correspondingly. The most obvious feature is that the storage of construction steel has shrunk, which may be connected to the ending of Shanghai World Expo and the following increasing purchasing amount.
Rising material cost
China’s iron ore price is rising mildly. The recent quoted price is CNY 1290 per tonne, up by CNY 20 per tonne compared to last week. As the supply is rather tight, China’s steel enterprises are quite cautious when purchasing, so the actual transaction market is not very active.
Prediction of profit
Based on the calculation of profit of last week, this week’s profit earned by China’s steel mills is rising slightly. Although the process has continued for at least three weeks, the upward step is always small. The reason may be that the price of material is also rising while steel price is rising.