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Govt micro stimulus lifts steel demand in China

  • Wednesday, August 13, 2014
  • Source:ferro-alloys.com

  • Keywords:iron ore, steel
[Fellow]China's iron ore import surged 18 percent in the first 7 months from a year ago to a total of 540 million tons,turning around from the beginning of this year. This came as China's manufacturing industries expanded at a mild pace, and international iron ore pri...
China's iron ore import surged 18 percent in the first 7 months from a year ago to a total of 540 million tons,turning around from the beginning of this year. This came as China's manufacturing industries expanded at a mild pace, and international iron ore prices dropped.
 
Rizhao, China's largest port for iron ore imports, is much busier now than the first quarter of this year.
 
Trucks comes and go, picking up stocks for steel mills that suddenly saw a surge in demand from the 2nd quarter.
 
"A state owned steel firm will come to negotiate with us next week and will increase 2 million yuan worth of orders. They have seen profits rising from Q2, their production is recovering too." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
 
Official statistics show a steady rise of crude steel output each month in the first six months of the year. It even reached a record high of nearly 2.3 million tons in June.
 
Analysts say micros policy adjustments by the governments has boosted demand for steel.
 
"We've seen a rise of activities in industrial infrastructure building, railway construction, and projects to improve people's livelihood, and auto manufacturing. These all pushed up demand for steel , and in turn boost demand for iron ore." Xin Weihua, Director of A Iron Ore Trade Firm, Said.
 
Meanwhile international iron ore prices have fallen to about 90 U.S. dollars from its peak of 130 U.S dollars per tonne. Steel mills have turned to imported materials for higher quality.
  • [Editor:Yueleilei]

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