China domestic steel price has limited upward room - 03 Jul, 2008
China Securities Journal reported that domestic steel price of the week ended June 29th keeps flat with that of the previous week on average, with different products show mixed trend.
According to the weekly survey from Ministry of Commerce, traders are under great stress in purchasing new stock due to the steep price at the moment, therefore, the ministry expects limited scope for further price rally. Meanwhile, price of 1mm CR sheet and 10mm medium plate of commodity grade has dipped 0.8% and 0.7% respectively, while angel steel and seamless tube up 0.9% and 0.7%.
Steelmaking cost is poised to rise further following Baosteel's recent contract ore settlement with Australian ore miner Rio Tinto. Baosteel agree to pay an over 85% increase for Australian ore, a bigger hike than its ore deal with Brazil's Vale earlier this year.
