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Prices polarize steel market

By Tu Lei (chinadaily.com.cn)
Updated: 2006-07-26 08:42

Domestic steel companies began to increase the factory price of high-value-added steel after accepting a 19 percent iron ore price increase on June 20. The prices of common carbon steel plates and low-alloy steel plates increased 100 yuan (US$12.51) per ton, down 6 percent compared with that of the suggested price before negotiation.

Baosteel Group, China's largest steel maker, has increased prices for two consecutive  quarters since the end of last year, and announced recently that it would raise third quarter product prices by six to eight percent.

Xu Xiangmin, an official from the Public Relation Department of Shougang Group, said the high-value-added steel supply still falls short of demand. "The price hike is attributed to the driving demand from the auto or aviation industries," said Xu.

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The full text is available in the July Issue ofChina Energy.