CISA: Sufficient support for further rises in Chinese steel prices in 2010
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The China Iron and Steel Association (CISA) has stated in a new report that the average comprehensive price index of finished steel in China during the past year was 103.12 points, down 33.54 points or 24.54 percent compared with the previous year.
According to the CISA report, increasing fixed asset investment is the main source of momentum for the growth of steel demand in China; meanwhile, China's moderately loose monetary policy has also supported the country's high levels of steel production.
As regards the likely price trends in the steel markets in 2010, both the US and European economies are expected to show continuous improvement during the year; meanwhile, domestic steel demand in China will maintain its growth in line with the recovery of the national economy, and raw materials prices will continue to go up. All these factors will provide strong support for steel prices in China. As a result, the CISA thinks that China's steel prices in 2010 will have sufficient support to sustain continued upward movement.