Xiamen Economic Daily reported that the steel price has sharply boomed by CNY 400 per tonne at Xiamen city in Fujian province since the lunar New Year.
Many intermediary merchants made a huge bundle in short one month. While, the prices suddenly stopped hiking after March 29th and market players revealed that middle business men started shipping out storages for cash out, as the results of iron ore talks haven't come out
During the period from March 22nd to March 29th, steel prices in Xiamen posted an averaged increase of CNY 100 per tonne with the highest surpassing CNY 200 per tonne. Meanwhile, steel mills continuously lifted their EXW prices pushing some middle men to store the products in mid March.
One trader disclosed that if they started hoardings before Spring Festivals, a larger profit they would obtain. In fact, basic pattern of China steel market didn't show any big changes which purely speculated by the iron ore prices.
As per the statistics, steel prices ceased hiking for 3 days from March 30th mainly given that some traders started shipments for cashing out.
One of the traders in Xiamen said "Maybe it is the good opportunity for traders to ship out. The demand for steel products is on the increase after Spring Festivals. Of course, the ongoing iron ore talks may determinate the steel prices in the future.”
(Source from Xiamen Economic Daily) |
