STEEL NEWS

Steel price may hit a record due to a surge in demand

As production rises after the New Year holidays, according to the Global Times, Chinese mills are facing soaring steel prices, with some key positions such as rebar jumping 6.62%.

Experts said the continued resumption of work in China could cause steel prices to exceed record highs this year, the beginning of the country's 14th five-year plan (2021-25).

Domestic iron ore futures peaked at 1180 yuan ($ 182) per tonne last week, with prices for coke, steel scrap and other raw materials rising, according to the Beijing Lange Steel Information Research Center. Although iron ore then fell 2.94% to 1107 yuan, it remained above average.

Iron ore is trading at an average of $ 150- $ 160 per tonne and is likely to rise above $ 193 this year, possibly even up to $ 200 per tonne if demand remains strong, said Ge Xin, senior analyst at the Beijing Lange Steel Information Research Center.

Experts believe that the beginning of the 14th five-year plan will contribute to further growth of the economy as a whole, so the demand for steel will also increase.

Post-holiday steel shipments started earlier this year than the previous year, and volumes as well as prices were higher, according to industry sources.

Due to the rapid rise in steel prices, some traders are reluctant to sell or even restrict selling at the current stage, expecting prices to rise even higher this year, according to an industry research group.

However, some also believe that China's market activity plays only a limited role in the rise in steel prices, as the country has a weak bargaining position in the international arena.