|
On
the afternoon of Sep.20, the 2nd steel saloon was organized
by Steelhome, part of formal members of Steelhome in Shanghai city took
part in the conference.
Steel price is undergoing a new period of adjustment, hence the future
price trend becomes the focus of those involved in steel industry.
Some
participants said that the price boom in the previous period is normal,
and the sole force that might drive up steel price lies in the iron ore
prices. Steel price will undulate around the manufacturing cost in the
near future, while any demand boost might cause 200-300 Yuan/ton price
surge.
Mr.
Cai Peigen, general manager of Aotai Steel analyzed current steel price
trend. He said, rebar price in Shanghai has dropped to the edge of
manufacturing cost, leaving slim space for further drop; supported by
medium wide strip and medium plate, HR plate/coil price has the
potential for further jump.
Mr.
Wu Wenzhang, general manager of Steelhome Website also delivered a
speech on “tight iron ore supply and high steel price in Q4”
Mr.
Wu indicated current price adjustment is quite reasonable. Firstly,
price difference between different varieties narrowed along with the
price hike. For example, 5.5mm HR coil price come close to that of
2.75mm HR coil, many other varieties also encountered such
embarrassment; secondly, after price hike, those cheap resources will
see great profit margin and be digested during recent time; thirdly,
higher domestic price compared with the export market has attracted
exporters back to China market, which might hit domestic price
consequently.
Mr
Wu said, raw material supply is still in shortage among Chinese steel
mills, and there is slight possibility for steelmakers to reduce the
ex-works price in Oct. China government’s macro-control policy would be
favorable for the steel market, and steel price will hover at high level
in the near future.
Raw
material supply keeps tight, and raw material price will ran at high
level
Many
flat products manufacturers are to start overhauling in the fourth
quarter.
Steel demand would keep strong in steel market both in and out of China.
Marco-control policy will be propitious to the future market trend.
Meanwhile, Mr. Wu also analyzed the possible risks that might emerge in
the fourth quarter, well, in general he is optimistic toward the future
market.
The 2nd Steel Saloon held by Steelhome
Mr. Mao Shiyang, from Shanghai Baiying
Company
Mr. Cai Pengen, from Taiao Steel
Mr. Gao Xiang, From Shanghai Juying
Company
Mr. Wu Wenzhang, Chairman of Steelhome
website |
