Chinese School - Steel prices climb 7.8% in May

BIZCHINA / Center

Steel prices climb 7.8% in May

(Xinhua)
Updated: 2007-06-06 17:03

The price of major steel products in China rose 7.8 percent in May from
the same period last year as demand and production costs both climbed,
according to the country's top economic planning agency.

The steel price averaged 4,255 yuan (US$557) per ton at major markets in
30 provinces, municipalities, and autonomous regions, 3.34 percent up on
April, said Wang Shuangzheng, an official at the Price Monitoring Center
of the National Development and Reform Commission (NDRC).

Stainless steel recorded the biggest price jump, said Wang, outstripping
low-end construction steel, pipe steel and plated steel.Stainless steel
sheets were traded at 32,927 yuan (US$4,310) per ton on average, up 37.43
percent from last May.

Wang predicted the steel price will continue to rise in June as this is
one of the peak seasons for construction and the prices of iron ore and
coke are also climbing.

Despite the scrapping of export duties on some steel products, steel
exports are booming with the international steel price higher than the
price in China, Wang added.

China exported 21.3 million tons of steel products between January and
April, more than double the 9.2 million tons in the same period last
year, according to the General Administration of Customs.

Related readings:
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Gov't to maintain restraints on steel exports
Top steel makers form joint venture Baosteel not to change prices

The world's biggest producer and consumer of steel, China has introduced
a series of measures to curb the growth in steel exports this year.

China imposed five to 10 percent export tariffs on more than 80 steel
products including common carbon steel wire, sheets and plate on June 1.

The country also removed export tax rebates on 83 steel products and
lowered the rate on 76 others to five percent as of April 15. A total of
83 steel products became subject to an export license management system
on May 20.

"It may take a while before the measures take effect. Demand for steel
remains high in the global market," said an NDRC report released last
week.

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