Iron ore prices rising steel prices soaring to promote just one weeks time, Chengdu, steel prices rose another 100 yuan per ton, has reached 4400 yuan / ton. This steel traders, like "double-edged sword" - that is good news, because the book profit of steel stocks also rose 100 yuan per ton; but it is also bad news because it means continued high inventory stockpile increased risk and may even be ascribed to repeat the end of 2008 steel prices drop nightmare. "Although the stockpile of the 'cake' huge, but we will not be greedy." Some dealers yesterday cautioned that the book would not be the pursuit of profit initiative to hoard goods.
Steel prices: soaring 500 yuan per ton Festival
"Iron Ore has broken 150 U.S. dollars per ton CIF." Steel trade enterprises in Sichuan Ronteix excellent person is responsible for Steel, iron ore spot prices surge to force the domestic steel prices.
In the past 1 week or so, including Hebei Iron and Steel, Anshan, Wuhan and other major domestic steel mills have raised ex-factory prices of steel products, followed by the rapid conduction to the traders at the downstream. 1 week, the Chengdu steel traders in the hands of the steel price rise 100 yuan per ton.
Since the Spring Festival this year, has been, steel prices are up even more close to 500 yuan a tonne.
Negotiation: traders or swallow the bitter fruit prices
At present, China Steel Association is still with the global iron ore producers to negotiate. It is said that the world's ore producers and Japanese steel makers have reached a preliminary agreement to be entered into with short-term contracts linked to spot market. This means that the Japanese side could accept 90% -100% iron ore price increase proposal, the negotiations on China's iron ore an unfavorable situation.
Chengdu, the majority of steel traders are not optimistic about iron ore negotiations, a steel trader anonymity bluntly: "From the historical point of view, the outcome is likely to be forced to accept the iron ore prices, steel traders will ultimately bear the the causes of iron ore price rise brought about by pressure of rising cost of steel. "" iron ore price rise cost pressures brought about only by the traders to digest. If the poor market conditions, traders will face a loss possible. " Insiders pointed out that the majority of steel traders and steel mills signed an agreement must be the amount of purchase from time to time.
Forecast: May or shot up to 4,800 RMB / ton
Although no pre-digestion of steel stocks will rise because of steel prices and let the dealers are enjoying record profits, but the earth Mianyang, Sichuan Green Industrial Co., Ltd., chairman of paint, said: "We are concerned that steel prices continue to climb that could allow traders to Station on the cusp, once the iron ore prices, we will be faced with a huge loss. "This is not trading over-worried. Domestic steel prices in October 2008 and August 2009 had twice undergone rapid land ascribed to sell into. Longtai U Steel said: "From the book profits to a huge loss, may be the blink of an eye of time."
Based on the above considerations, traders forecast steel prices in May could stand on the 4800 RMB / ton high. "But we will not rush hoard goods." It seems the traders, including the exchange rate issue, trade protection barriers and many other uncertainties that may affect the steel prices in April after the trend. Paint Green said: "We are now in operation is very simple, not crazy to sell, nor a large number of hoarding goods to go along with market conditions and refused to greed."
