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Since the end of the long holiday of the Spring Festival, the domestic steel market has run in the rising channel for two consecutive weeks, but the sign of retreating has been seen after the surging. The iron ore prices have rose to the record high in four months, but still in a certain range at the low level. The mining giants across the world have successively recorded losses in the iron ore business.
According to the analysis, the prices will continue to rise in the building steels market. In Shanghai, Hangzhou, Guangzhou and other regions the prices have gained RMB 10 to 80 / ton in a week. However, different regions recorded different performances in trading. In Shanghai and other regions with the prices at a high level, the demands could not continue to grow, and the prices have slacked. But in Beijing, Tianjin and Hebei, the market prices continue to go up with moderate transactions, the confidence has been boosted in the market, and the general trend is turning robust in stability.
The prices continue to rise in the plate market generally. The prices of hot-rolled coil record significant increases, rising by RMB 30 to 110 / ton in Shanghai, Guangzhou, Wuhan and other regions in a week. Different regions show almost the same situation, where with the spot prices pushed up remarkably, the market has entered the wait-and-see stage, demonstrating the sign of adjusting almost at the same level. The prices of medium and thick plates have posted substantial increases, growing by RMB 50 to 170 / ton in Shanghai, Jinan, Wuhan and other regions in a week. In Kunming and other regions, despite the low-level transactions, the trading companies are optimistic, considering the low market inventories.
According to a report, in the domestic ore market, Hebei region registered small increases in the prices of fine iron ore in February. After the Lantern Festival, the domestic mines have resumed the production successively, and the steel mills are slightly more active in purchasing domestic ore with the purchases increased a little. In February the prices of imported ore were pushed up significantly, with the price once reaching US$ 51.2 / ton on February 20, a new high in four months. As of February 25, the Platts 62% iron ore index closed at US$ 49.55 / ton, up by US$ 7.15 / ton from the end of last month. According to the analysis of a relevant institute, in recent two months, the domestic steel prices have recorded substantial increases in the off season, the resources at lower prices have been concentrated rapidly, and the domestic steel market will face some pressure for “cashing” in March. However, considering that the recent policies form some “positive factors” for both the supply and demand ends for iron and steel, the overall supply and demand in the market are expected to be improved further.
