Economy

Steel price down despite iron ore price hike

(cntv.cn)
Updated: 2010-06-04 09:22

BEIJING: International suppliers are raising iron ore prices. But as experts have pointed out, this does not necessarily mean a rise in steel prices. In the first four months of this year, the price of imported iron ore in the Chinese market rose by 26 percent, which pushed up steel prices for a time.

Related readings:  Morgan Stanley says steel, building materials are good bet  Iron ore prices may rise 30% to 50% from July  BHP, Rio iron venture plan might be reconsidered

On April 15, the price of deformed steel bars rose to 43,000 yuan ($6,300) per ton in the Shanghai market. But since then, the steel market has seen a continuous fall. The price of deformed steel bars dropped more than 10 percent to only 39,000 yuan per ton. Experts attribute this to the demand change caused by recent policies.

Liu Qiujun, Chief analyst, said, "The government's structural adjustment policies have greatly pushed down investment in infrastructure. Also the tightening policies to curb the real estate market have dampened demand of property developers."