December 02, 2008

Chinese steel prices predicted to keep rising

China Iron & Steel Association forecast that although the world faces a slow economic growth, China's boosting steel demands will drive the domestic steel market price to largely rise.

Rising steel prices will be impelled by four factors
1. Reducing inventory
2. Slow steel production growth
3. Tight supply situation
4. Surge in international steel market prices

At the end of March 2008, China’s steel composite price index hiked 5.28% or 7.14 points from a month ago and 29.61% or 32.51 points from a year earlier to 142.31 points hitting a record high. In the first quarter of this year, the growth of China's steel prices approached 20%.

Meanwhile, insiders predicted that the world's steel prices would keep jumping, chiefly due to the resource supply shortages and escalating prices of related raw materials.