Commercial Weather Forecast: The steel price rose slightly last week (December 3rd to 9th). High speed wire rod and deformed steel bar rose higher. According to the monitoring reports, the average price of 6.5mm high speed wire rod is 4480 Yuan/ ton last week, up 80 Yuan than the former week; 25 mm deformed steel bar is 4700 Yuan/ ton, up 130 Yuan.
The main reasons for the price rise are:
The rise of material cost, such as iron ore, coal, stimulates the steel producers to raise the steel price.
The vigorous demand for constructional steel in East and South China. A batch of important project is under construction, such as subway, tunnel and International Expo. Venue etc., all have large demand of rod wire and bars.
The drop of steel wire and bar stock. Data shows that the stock is still decreasing. Compared with the beginning of November, the constructional steel stock decreases in major cities. Wire rod decreases 17.68%, deformed steel bar 4.48%.
Due to the above reasons, It is expected that the price of Wire rod and deformed steel bar will run at a higher position.
