Global steel prices expected to sharp rebound with market good news

Publish time: 19th September, 2012      Source: ChinaCCM
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Taiwanese carbon steel plate buyers believe that the market will keep rolling because of price up on raw material costs and increasing demand, particularly driven by the third round of Quantitative Easing (QE3) by the US.

As a result, some buyers have initiated to replenish their inventories and purchased bulk steel sources with the lowest level of steel prices.

The global steel market recently has released some advantages on future trend of steel price.

It indicates that China will invest around RMB1 trillion in the domestic infrastructure projects on railway and road constructions, expecting to spur huge demand for steel nearly 80 million tons.

Chinese steel price accordingly presented a soaring rebound last week with sharp increases in carbon steel hot rolled coil and baby slab on average by RMB 270 and RMB290/ton respectively.

On the other hand, the initiated QE3 also drove up the metal and oil prices, boosting the share prices of iron ore enterprises by sharply around 5~6% in Australia and Brazil.

It is estimated that the steel prices eventually will come off trough with hectic iron ore prices.