CISA: Surging Steel Prices to Push Up Steel Costs

SHANGHAI, Aug. 18 (SMM) – Elimination of “Ditiao steel” capacity and tougher environmental crackdowns could help steel prices return to normal level, said Chi Jingdong, Deputy General of China Iron and Steel Association (CISA).

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However, such big rise in steel prices in such a short period of time is irrational. Chi added.

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The surge in steel prices will, in turn, push up costs for steel mills, such as imported iron ore, Chi warned.

Note: “Ditiao steel”, which is a Chinese name for low-quality steel produced in intermediate frequency furnace with steel scrap as raw material, as well as rolled steel products produced with such steel as raw material.

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