Domestic steel prices will see a rise of at least 400 yuan ($63.34) per ton by year-end compared with the price level in early September, an expert forecast Monday, following the government's recent approval of a series of infrastructure projects.
Prices of some steel products have already increased by around 300 yuan per ton over the past week. "Steel prices may continue to rise, given the recent favorable news," Ma Li, a senior analyst at Beijing Lange Steel Information Research Center, told the Global Times.
Since September 5, the National Development and Reform Commission has announced the approval of more than 50 infrastructure projects, worth a total of 1 trillion yuan. And several provincial governments have also announced plans to spur economic growth, which are all likely to boost steel consumption.
Meanwhile, the US government announced a third round of quantitative easing last week, a move that has ignited expectations of a rise in international commodity prices.
China's steel industry has seen a continuous slump this year. Steel prices have dropped by 25 percent to some 3,000 yuan per ton compared with the beginning of the year.
News we recommend:
Banks to make presence in the cultural market
How we all gain in the power of two
British industry revs up to meet China demand
Latest iPhone to hit China's gray market
Huawei & ZTE
deny facilitating espionage
Apple fans find little to excite in new
Foreign telecom companies eye China
China's Apple fans on the wane?
Volvo plans expansion amid