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| Speculators playing major role in upheaval in Chinese steel market - 30 Jul, 2010 | |||||||||||||||||||||||
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In the recent week, the rebound of Chinese steel market was so dramatic that the pushing forces behind the rebound are more or less neglected by people. However, lots of analysts have perceived speculations in the rebound. As of July 28, statistics of major steel advisory agencies all suggest that the rally has covered all steel species, especially rebar and high wire rod. If the trend continues, the steel price increase is expected to go beyond the past record high of 8%. Anyhow, there is no sales surge following the price rally, not even in major steel markets like Beijing, Shanghai and Guangzhou. Speculation factor emerges As disclosed by a Beijing trade, Beijing market is now hoarding goods on a large scale. In June, steel foreign trade was gradually recovering, and then some traders began storing up small quantity of goods, waiting for export of domestic sales. That is the real reason behind the price rally in Beijing market in recent days. While in Shangdong market, the speculation on iron ore, and the provincial government control on backward production capacity directly push up the steel price. In the coming end of July, iron ore price negotiation is about to start. As the three iron ore giants are advocating for quarterly-pricing and index-linked pricing, the price rise of steel will surely increase the bargaining chips of the them, so the three giants also have motive to push up steel price in the recent period. It is also noticeable that in Guangdong steel market, the price of construction steel is experiencing the fastest rising. Except for the good news brought about by the constructing needed for the Asian Games, the betting on the change of the real estate control policy is also playing an important role in the rally. In a word, speculations are an invisible hand behind the recent rebound of Chinese steel price. www.steelprices-china.com is a comprehensive service for tracking real time domestic steel prices and trends in China on daily basis. The scope of service includes 1. Domestic pricing information in China 2. Export levels from Turkey, Rotterdam, China, India and Black Sea The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region Methodology and access 1. Benchmark products in each category with fixed commonly used sizes and grades 2. Average transaction levels which have settled well, based on continuous interactions with domestic mills and traders 4. On fixed market oriented payment terms 5. Daily updates 6. Data available since July 2008 5. Access through web site Products covered 1. Input materials and semis 2. Long Products 3. Flat Products 5. FOB levels for export FOB Black Sea, China, Turkey and India Other features The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news. Subscription charges for 12 months period
How to subscribe 1. Register at www.steelprices-china.com and pay on line or ask for invoice 2. Send mail to admin@steelprices-china.com. (Sourced from www.steelprices-china.com) | |||||||||||||||||||||||
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