Shanghai HRC market to continue fluctuating for some time- 21 Jun 10

According to Mr Li Debo GM of a Shanghai based steel industrial company lately in an interview, HRC market in Shanghai will continue fluctuation for some time.

According to his expectation, the HRC price will move around CNY 4200 per tonne in a range of CNY 150 per tonne.

Mr Li believed that the effect from demand retreat and oversupply will outreach that from rising iron ore price, which has climbed up to USD 147 per tonne leaving limited room for mills to lower prices, though.

He said that there are uncertainties for the second half of 2010 world economy. Global steel demand will be impacted by the European sovereign debt crisis and conventional summer holiday in the West with accompanying operation suspension.

He added that European steel price is likely to fall in the future several months as a result. The effect from the back of high cost will fade away and the global steel market will face great pressure, which is also true of Chinese steel exporters.

Mr Li said China HRC and the whole steel market will unlikely to rally substantially in quite a sometime in the future and fluctuating movement will be prevailing.

Jun 21, 2010 08:40
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