The price of major steel products in China rose 7.8 percent in
May from the same period last year as demand and production costs
both climbed, according to the country's top economic planning
agency.
The steel price averaged 4,255 yuan (US$557) per ton at major
markets in 30 provinces, municipalities, and autonomous regions,
3.34 percent up on April, said Wang Shuangzheng, an official at the
Price Monitoring Center of the National Development and Reform
Commission (NDRC).
Stainless steel recorded the biggest price jump, said Wang,
outstripping low-end construction steel, pipe steel and plated
steel. Stainless steel sheets were traded at 32,927 yuan (US$4,310)
per ton on average, up 37.43 percent from last May.
Wang predicted the steel price will continue to rise in June as
this is one of the peak seasons for construction and the prices of
iron ore and coke are also climbing.
Despite the scrapping of export duties on some steel products,
steel exports are booming with the international steel price higher
than the price in China, Wang added.
China exported 21.3 million tons of steel products between
January and April, more than double the 9.2 million tons in the
same period last year, according to the General Administration of
Customs.
The world's biggest producer and consumer of steel, China has
introduced a series of measures to curb the growth in steel exports
this year.
China imposed five to 10 percent export tariffs on more than 80
steel products including common carbon steel wire, sheets and plate
on June 1.
The country also removed export tax rebates on 83 steel products
and lowered the rate on 76 others to five percent as of April 15. A
total of 83 steel products became subject to an export license
management system on May 20.
"It may take a while before the measures take effect. Demand for
steel remains high in the global market," said an NDRC report
released last week.
(Xinhua News Agency June 7, 2007)