Chinese pig iron market to continue uptrend in April
It is reported that Chinese Domestic pig iron market will restart the uptrend in April, following modest downswings in mid March.
After announcement of iron ore benchmark prices in February, EXW price for pig iron increased by CNY 200 per tonne to CNY 300 per tonne within a short time, but slid in mid March by CNY 50 per tonne to CNY 100 per tonne in most regions.
In April pig iron price will resume uptrend, owing to the following reasons
1. 65% iron ore price advance will be implemented
EXW prices for steel products will rise by different ranges. Despite notable upswings in previous period, too swift price growth resulted in suffocated demand in end market and steel market began to dive in mid Mar. As iron ore price hike will come into effect, pig iron price advance will be passed on to steel price rises.
2. Production costs for pig iron keep increasing.
Coke price will gain RMB 100 - 150/ton in Northeast China and Shanxi from today, inevitably arousing coke price increases in other regions. Besides, on account of the implementation of the 65% rise for contracted iron ore, ore price will possibly firm up or even rebound. Production costs will climb further, and iron markers can hammer out price hikes at any time.
3. Reviving steel market provides opportunities and space for pig iron price advance
Steel market has stopped declining and began to recover during the past week. Prices for wire rod and rebar jump in most regions during recent days. Steel stocks in Shanghai, Nanjing and so on have fallen dramatically. Steel market is expected to further more upwards in Apr since booming season has come for steel consumption in both northern and southern regions. Up going steel market promises possible price hikes for pig iron market.
Source: MySteel.net
« Back
|