 Category |
|
|
| |
 Chinese steel price expected to rise in 2010 - Analysts |
It is reported that Baosteel will raise another CNY 300 per tonne for its next January EXW prices to be published in the coming few days, if there is no exception.
Information shows that steel price will face pressure of pushing up the next January and household electric appliance sector, one major steel consumer, said that it cannot promise to keep the prices unchanged if the steel price goes up further.
Mr Sui Zhongliang steel analyst with the Purchasing Center of Midea Group, China major household electric appliance maker said "If an irrational steel price surge as 2008 occurs again household electric appliance industry will be unable to digest the burden from cost rise, and one way left for it is to raise the end products prices."
The paper learned that this round of steel price rise has come to surface since November. Before long, Baosteel Group and Wuhan Iron & Steel Group Corporation, China No 1 and No 3 steel maker, announced their December EXW prices . Baosteel called off November price discount of CNY 100 per tonne to CNY 300 per tonne and WISCO, scaled up CNY 100 per tonne to CNY 300 per tonne on the basis of November level. This trend is going on.
An insider disclosed that "As far as I know, Baosteel will add CNY 300 per tonne in December price for next January delivery."
More than 30% of Baosteel products are applied in auto and household electric appliance sectors at present. It is learned that its steel plate serving these two industries has gone in short now, forcing customers to clinch orders before bargaining and making more anticipation about its price lift.
It is widely expected in the steel industry that there is still a space of 20% to 30% for steel price to rise the next year, given the acme of close to CNY 7500 per tonne last year in the comparison with current CNY 5000 per tonne still on the bottoming out way.
|
|
| © 2007 Benlog International
Trade (HK) Co.,Ltd. All Right Reserved |
|
