Chinese steel prices post second consecutive gain with 3.9% rise in June

Jul 21, 2009 | 11:59 AM |

China's steel prices rose for the second consecutive month in June thanks to recovering domestic demand, according to the China Iron and Steel Association (Cisa).

Steel prices as a whole increased 3.9 percent from May but still trailed the same month last year by 37 percent.

"The effects of the government's economic stimulus package further emerged in June, the local economy stabilized and improved, and local steel demand obviously grew and supported steel prices in a slight rebound," Cisa said. "Domestic steel demand (is expected) to grow steadily in coming months as government stimulus measures successively work out." However, the association expects local steel prices to remain relatively stable and oscillate in the third quarter.....