Price rises by some Chinese mills not seen indicative of recovery

Some major Chinese mills have stopped slashing prices or even lifted list prices amid shrinking supply and reviving demand from some property developers in northern China.

However, no substantial recovery is expected any time soon as market demand is expected to remain weak in general before the end of the year, market participants said. Shagang Group in Jiangsu province, China's biggest private mill and a major long-steel producer, said on Monday that it would keep rebar ex-works prices unchanged and raise wire rod prices by 50 yuan per tonne. Meanwhile, Rizhao Steel, a major sections maker in Shandong province, lifted list prices for H-beam by 150 yuan per tonne. The moves are unusual as Chinese mills have generally been slashing prices since June, in hopes of boosting sales amid pale demand. "Steel prices have stabilised recently, especially for construction-use products…...

Published

Linda Lin

November 03, 2008

05:57 GMT

Shanghai