July has been watershed in recently with steel price steadily improving despite no major change in economic and financial policy. Believed to be fallout of gradual pick up in buying after the worst of summer is over and construction activity picks up.
Irrespective of persistence of tight credit policy Chinese urbanization and modernization of infrastructure in semi-urban and rural areas is enough to keep the demand chugging along and consuming bulk of the steel consumed. Moreover the declining social inventory has certainly catalyzed the stockiest traders to replenish stocks in time to meet the augmented demand.
Recent flurry in steel prices has already encouraged steel mills to hike price levels midway. The irrepressible crude steel production continues to roll on at averaged 2.1812 million tonnes in late June, up 0.78% from the second 10 days.
Mid Year Economic Conference to be held in later July can be the turning point if the government comes out with new measures to push demand in the H2. In the backdrop of improved economic situation in USA and Europe there is certainly tickle of hope.
Class
30-Jun
08-Jul
Change
%
CLPPI
5970
6085
115
2%
CFPPI
5633
5688
55
1%
CHISPI
5779
5860
81
1%
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index