According to Mysteel, recent measures undertaken by the Chinese government to stabilize prices in earthquake hit regions, would have limited impact on Chinese domestic market as the intervention is for limited products.

China's top economic planning agency the National Development and Reform Commission said in an urgent announcement that local authorities should take measures such as temporary price intervention to stabilize prices of tubes for tent support, steel sheet and coil, strip and polystyrene for temporary housing construction.

Mr Wang Jianhua deputy director of Mysteel Research Institute, pointed out the announcement merely covered tubes and steel sheet and coil and strip for temporary housing construction, not all the construction steel products.

He said that it is worth attention that some enterprises or traders may speculate to raise up prices for other products and prices may rebound up sharply in mid August 2008.

(Sourced from MySteel.net)