MySteel reported that on the backdrop of steelmakers across the world lifting prices of steel products to recoup escalating raw materials costs, Chinese steel price rally is expected to come at the end of February 2008.

A senior steel analyst in Shanghai said that "Chinese steel prices are set to rise around the end of this month, since it takes time for domestic steel market to start up to full extent after the Lunar New Year Holiday. Domestic steel prices would inch upward slightly in recent days bolstered by positive market sentiment.”

Mr Wang Jianhua vice director of MRI said that “Steel sales used to be sluggish in February 2008 is due to the festivals. However, the fundamental market supply and demand has been disrupted as a host of steel mills have been forced to slash or suspend production as a result of tight supply of coking coal. Moreover, depleted steel inventory held by down stream users would also lend support to steel price rally in days to come.”