8/17/2011 1:50:00 AM
NEWS BRIEFS
Chinese Wire Rod Prices Heating Up
Inventories of of wire rod and four other main steel products fell for the fourth straight month by 3.24% to 13.85 million tons in 26 major Chinese cities during July — the fourth straight month of declines, Reuters reports.
Demand has been driven by large-scale housing construction and railway projects. Data from the China Iron & Steel Association showed that wire rod spot prices gained 1.51% during July, while almost all other flat steel products fell modestly in July.
“Chinese steel mills will still face high production costs in the near future, narrowing the room for prices to fall in a large way,” CISA added.
The news comes as more of China’s leading steel mills hike prices for September in anticipation of stronger demand.
Both Wuhan Iron & Steel Co. Ltd. and Beijing Shougang Co. Ltd. raised September prices for flat steel products after Baosteel hiked prices the week before.
Baosteel reportedly increased prices for hot-rolled coil by 60 yuan ($9) per ton and cold-rolled coil prices by 120 yuan per ton for September.
“Price rises by steel mills reflect climbing prices in the spot market since the end of July as steel mills received strong bookings in August. Steel prices are expected to increase next month as traders and end users need to build up stocks as demand improves,” said senior trader Bill Chen of Hong Kong-based Smart Timing Steel Ltd.
Angang Steel Co. Ltd. is expected to announce new prices by week’s end. ©2011 GlobalFastenerNews.com
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