The increase in the association’s forecast prices - the first so far this year - failed to live up to market expectations, however, with many participants noting that the forecast prices remain below levels currently seen in the spot market.
The GTA expects the average price of APT to rise by 2,500 yuan ($354) per tonne to 108,500 yuan per tonne in August. This compares with the association’s forecast APT price of 106,000 yuan per tonne for July.
The increase, rather than reflecting an improvement in market fundamentals, is seen by market participants as the association attempting to bring its estimates more in line with current market levels after forecasting a significant fall in the average price for APT in July.
"If you offer APT below 109,000 yuan per tonne, then...