Week 31 opened with sigh of relief with prices of long and flat products developing resistance. Even though it would be premature to verdict bottoming with maiden break in trend it did give fillip to the sentiments both in finished and raw material.
Even iron ore price appeared bottoming out at levels of USD 124 per tonne to 125 per tonne, CNF after loss of USD 8 per tonne over the last week.
At least a week long consistency in improvement is imperative to ascertain that the worst is over.
Demand is yet to open as the government and industry guarded with credit liberalization and infrastructure projects. Reality sector is held in limbo strapped in acute credit crisis.
However with the passage of monsoon activity is slated to pick up in towards September-October before the winter commences.
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Source - Strategic Research Institute