Despite that the weather is really cold now, China’s steel price is still in the upward trend.
On December 15, as the reporter has known from Shanghai’s steel market, the price of all kinds of steel products is rising on a firm base. Among them, the price of the 6.5mm ordinary wire rod is quoted at CNY 4650 per tonne, up by CNY 30 per tonne compared to the price of the day before.
However, experts also remind that the basic demand and supply condition is in fact not in favor of a continuous price rise for long time. So both steel enterprises and traders shall be more cautious.
From the perspective of short term, the main reason China’s steel price is rising now is due to the winter storage effect, which can’t sustain for a long term. Throughout the winter season, it is natural that market demand will gradually decrease even with the effect of winter storage. So it’s reasonable to say that the basis of current price rise is not very firm.
To conclude, China’s steel price will hardly keep rising for a long period of time.