Steel prices to move strong in the coming month
By Eunice Ouyang
Editor, SteelOrbis China
According to China’s Xinhua News Agency, till August 19, the Xinhua-China Iron Ore Price Index for imported iron ore with 63.5 percent iron content was at 138 points, up 24.32 percent or 27 points compared to the index of 111 till June 3. While, till Aug 26, the Xinhua-China Iron Ore Price Index for imported iron ore with 63.5 percent iron content was at 137 points, down one point compared to one week earlier, which registers the first drop in August.
Currently, traders are still optimistic towards the prospect for the future iron ore market due to good economic situation and no big change in supply and demand, it is expected that domestic iron ore prices will keep steady in the coming week.
As for China steel market, recently, due to the overall price rises of iron ore, other raw materials, including coking coal and coke also witnessed price increases during the same period. Market participants stated that rising cost of raw materials will push up steelmakers’ costs, while also provide a certain support to steel prices in China market. As September, the traditional peak season of steel consumption is approaching closer, demand for steel is believed to show improvements in the coming month, which will also boost the steel prices. Moreover, with improvements of the economic situation in developed countries and regions like US, EU and Japan, international demand will also edge up, which is another good news to steel market in China. It is estimated that China steel market could keep strong in the coming month, while with limited range.