Chinese steel prices to trend stable in May-June with some fluctuations

Thursday, 13 May 2010 11:30:27 (GMT+3)   |  

In April, the comprehensive average price for four steel product categories in 22 Chinese cities as surveyed by China's National Development and Reform Commission (NDRC) was RMB 5,026/mt ($737/mt), up 9.1 percent month on month and 39.5 percent year on year. In particular, the prices for rebar, wire rod, medium plate and cold rolled sheet in April stood respectively at RMB 4,205/mt ($616/mt), RMB 4,100/mt ($601/mt),RMB 4,283/mt ($628/mt) and RMB 6,080/mt ($891/mt), increasing by 10.9 percent, 11.3 percent, 12 percent and 4.2 percent, compared with the previous month, and up 30.8 percent, 36.5 percent, 45.3 percent and 44.8 percent compared with the corresponding period of 2009.

Looking at the price trend in April, prices first trended upward before becoming more or less stable. The comprehensive average price increased to RMB 5,085/mt ($746/mt) on April 14 and then trended downward slightly to RMB 5,008/mt ($734/mt) on April 30.

Overall, it is expected that Chinese steel prices in May and June will trend stable with some fluctuations, influenced by several factors such as the debt crisis in Greece, the real estate control policy in China and the high production costs shouldered by steel producers.


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