SHANGHAI, Apr. 7 (SMM) – The RB 1310 contract price continued to rise after starting at RMB 3,760/mt on April 3 and finally closed at RMB 3,798/mt, an increase of 1.61%. Prices in spot market were also up RMB 10-20/mt. Most traders attributes the price hike to the list released by the Ministry of Industry & Technology Information which indicated the government with strengthen the elimination of outdated steel capacity.
Despite the recent price rallies and improved demand ahead of the Qingming Festival, most traders do not expect the stronger demand to give support to steel prices as the uptick in demand may unlikely last long. The government’s firm attitude to property market curbs lead investors to believe steel demand will wane in the future.
Steelease believes big swings in steel prices may not frequently occur this year as the government endeavors to control steel capacity and curb blind expansion, but stable prices are also not expected. Thus, opinions on steel prices have been divided so far.