It is reported that, in recent times, Chinese domestic special steel market eyed a price rebound of CNY 200 to CNY 300 per tonne and fell back again later. Market insiders believed that it may move towards stability in the coming August 2010, without big changes.

After the entry of August 2010, the special market is tending towards stability after previous price surges. In shanghai market, prices for cold heading steel arrived at CNY 4,400 to CNY 4,480 per tonne, or some at CNY 4,550 to CNY 4,600 per tonne, and in Hangzhou, prices for carbon structural 45# steel with small gauges went at CNY 4,400 per tonne.

Nowadays, the market transaction presented an upward trend, as per some market players. And 40% of product orders directly came from the end users, and the others from intermediate steel purchasers. That is to say, the whole market demand was not shrinking, but edged up. The latest survey showed that China's Purchasing Managers Index in July 2010 decreased by 0.9% to a score of 51.2% from June, which eyed a three month continuous decline but also still posted at above 50%, indicating that the whole manufacturing economy was on the swell with eased growing speed.

Besides, the raw materials also bounced back on the increasing steel prices, like the ex w prices of Mo60 in NE China was up to CNY 136,000 to CNY 138,000 per tonne, up by CNY 5,000 per tonne in one week, and that of Fe 63.5% India ore also rebounded to USD 150 to SUD 152 per tonne, which promoted the whole special steel market to move towards stability in late July 2010.

In Q4 2010, market demand for special steel would be further enlarged, and mills all started output cuts by 15.2%, so supply & demand relation won't be too prominent in the days to come. Meanwhile, most mills are unwilling to reduce their ex works prices on the growing production costs, and some have lifted the prices to support the spot market prices.

(Sourced from www.Mysteel.net)
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