Chinese steel market hoping to boost prices with round of destocking
Jun 30, 2010 | 01:00 PM
|
The Chinese steel market has kicked off a round of destocking that will probably last two months as domestic prices show no sign of rallying, market participants said.
"A lot of traders and stockists are selling inventories as they are expecting further price decreases in coming weeks," a local trader said.
Chinese steel stocks have grown quickly this year, encouraged by 11.9-percent first-quarter economic growth and higher-than-expected iron ore price increases.
Crude steel output hit record highs in four of the first five months of this year. "It was known to all that such a huge steel output was not sustainable," another Shanghai trader said. "As a result, inventories surged. The current destocking process will return inventories to normal levels so that the market can get healthy again."....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here