The relentless hike in input costs after runaway increase in iron ore and coal prices after the Australian floods kept the export levels chugging in China.
The domestic steel prices in China remain positive with gradual improvement since New Year. The reason for gradual improvement in demand is as follows:
1. Speculation about spike in production cost leading to hiked prices after the floods in Australian mines as led to buying
2. Stocking before the Spring Festival (3rd February) has picked up.
HRC demand is expected to improve as buying has picked up overseas in anticipation of price hike.
Rebar prices have improved since New Year as demand seems to be firm after period of inactivity during the vacation. Trader’s stockiest are reluctant to under sell their inventory.
HDG prices remained low owing to stiff competition from the Indian mills in havens of Europe. The market though strong Chinese material will have to be competitively prices to cut ice.
A lot will depend on the price movements after Europe and CIS opens fully after the winter vacation next week. However till the market settles down to the humdrum of normalcy chips will remain upbeat.