November 22, 2008

Reconstruction boosts demand for HDG and PPGI in China

It is reported that recently Chinese HDG and PPGI price have been surging despite slow domestic steel market. Supply is reported to be quite short and prices are continuously on the rise.

As per report the price increase is across the board and there has been an average increase of CNY 200 per tonne for HDG and PPGI since late May.

On Shanghai market 1.0mm HDG by Wuhan steel is being quoted at CNY 7100 per tonne. 0.5mm HDG at CNY 7500 per tonne,1.0mm HDG by Anshan steel goes at CNY 7050 per tonne to CNY 7100 per tonne, 0.5mm PPGI by Baosteel is at CNY 8600 per tonne, Guangzhou market has witnessed a substantial rise of CNY 500 per tonne to CNY 600 per tonne during the past two weeks

The major reason for the price surge is the reconstruction in earthquake hit Sichuan province. The constructions for 1.5 million temporary houses require at least 700,000 tonne of PPGI. Such a great demand has put great pressure on steel makers and most steel makers have to set aside capacity for PPGI production. This has really led to tension in supply and price surge.

(Sourced from MySteel.net)