December 03, 2008

BaoSteel sees high steel prices in H2 of 2008

It is reported that China's biggest maker of the alloy, Baoshan Steel expects steel prices to stay high in the second half as raw material costs rise and demand from automakers grows and the possibility of a steep decline in steel prices is thin in the second half.

Mr Fu Zhongzhe president of Baoshan Steel said in an online conference with investors said that “Steel prices will fluctuate within a narrow range at high levels.”

He said our automobile customers, mainly high end clients, can afford the rising prices. Baoshan may better last year's profit provided the Chinese government doesn't implement measures that will slow the economy.”

Mr Fu said China's economy has grown at more than 10% since 2003, and will likely continue growing at that pace this year.