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Low demand of steel contradicts with high inventories in China- 20 Dec 10

The recent price rise and production volume of crude steel hasn’t improved actual transaction in China’s steel market because of the high inventory.
As is shown by the latest market report, now steel traders are having different psychologies. Some think that the steel price may come across shocks and finally go up, while others think that there is not enough momentum for steel price to rise.
The statistics is that the daily production volume of crude steel in November is 1.62 million tonne, 38,000 tonne more than that of October.
Also in the recent week, under the influence of the high cost in China’s spot steel market and the undersupply of some materials, the steel price has generally risen a little bit.
During the recent price rise, there is obviously a division between the psychologies of different steel traders in China.
Some traders believe that with the firm support coming from the production cost and the uncertainty in the market supply, it is quite probable that price will go up further even with shocks. And others are less optimistic. According to them, the performance of market demand until now is far from very satisfying and as there is not sufficient support to ensure further price rise, they thus assume transaction in the future may decrease.

Dec 20, 2010 09:17
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