Flat steel prices shows sparks of revival in China

 29 Feb, 2012

Day 2 of week 9 was eventful with a sudden burst of activity in the flat product market. There was all round improvement in price more as an attempt by the mills and trading circles to push for price hike and test its acceptability.
The steel stocks even though at a high level in Chinese domestic market with very faint reduction after the Lunar Holidays. However mills have been flaunting their intention by hiking the prices by CNY 100-200 per tonne for March. An uncanny confidence is based on an anticipated hike in demand as the spring unfolds.
Although none of the players are affirmative about this turn of fortunes given the misery over the last 6 months wherein market movements have defied all logic of demand.
However a recent reduction in CRR by the PBOC on 18th February some positivism was on the cards.
It would be of avid interest whether the coercive tantrums of the mills and traders will sustain or at least give a direction to the market.
Source: Steeelprices-china.com