Steel prices to hold firm

Ferrous metal prices rebounded last week. In terms of news, the Fed released dovish decision to stabilise interest rate. In China, real estate industry was still in the stage of deep adjustment and transformation at the beginning of last week. With restart of steel mills and rising iron ore prices, ferrous metal prices ceased falling and hiked. Meanwhile, the sixth round of coke price cuts was implemented. Players fretted that steel price may further dip. In spot market, steel prices rebounded in the first half of last week amid improved trades, but declined in the second half of the week.

Looking forward, slow rise in pig iron output will fuel market sentiment. Rapid profit hike will also expand steel production. Short-term steel market may still firm up, if there is no large terminal demand reduction.