October 16, 2008

CRNGO prices in China firming up

It is reported that the NGO CR silicon steel ex works prices have picked up on a steely basis over the recent period.

Following a CNY 200 per tonnes to CNY 250 per tonne gain in January, the prices climb further by an average of CNY 100 per tonne excluding VAT for February, forcing smaller mechanical motor and household appliance sectors into more troubles. The CR silicon steel traders are also depressed in face of higher risks.

The traders' cost is close to CNY 7000 per tonne including VAT and have to increase market offers to CNY 7100 per tonne from previous CNY 7000 per tonne for "50WW800"*0.5*1200*C yet pushing smaller buyers into a wait and see status and leading to reducing transactions finally.

As per report buying upsurge is yet to come until the spring festival as majority downstream users and the traders are still faced with financial strains.