- CNTV English - CCTV News

Steel makers raise factory prices

08-19-2010 09:30 BJT

Watch Video

Play Video

The cost of steel in China is on the rise, as domestic steel makers raise their factory prices. But figures show that real steel consumption hasn't changed.

Steel prices in the domestic market continued to rebound this week. Data shows that in Shanghai, screw steel prices rose from 3910 yuan to 4000 yuan per ton.

It's due to domestic steel producers raising their factory prices sharply, in a short period of time. Last week Changsha Steel raised screw steel and steel wire price by 200 yuan per ton. Jiangsu Yonggang Group raised the prices by 190 yuan per ton.

This week, a total of 119 batches of steel products were sold by steel producers at higher prices.

Lin Xiaochun, Steel Future Researcher of Guotai Junan Securities said "Some steel producers are not positive about the future market prospects. They want to take advantage of this round of price rebounds to get profits."

But insiders say the current steel price hike has been triggered by speculation, not real increases in market demand. Although in the second half of July, steel consumption rose sharply, but it started to fall soon after that.

Chen Daoqu, Executive Director of Shanghai Yixiang Steel said "Many steel traders are now holding a wait and see attitude. Most of them already stored a lot of steel. If they continue to buy more from factories, their goods may be overstocked. "

According to the China Steel Association, the storage of 5 steel products in 22 major cities reached 10.8 million tons by the end of June. That's up 34 percent from the beginning of the year. Such high levels of storage were maintained in July.

Insiders say the cost of storage is about 3900 to 4000 yuan per ton. If market prices rise above that, dealers may start to sell.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program