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China's construction steel prices continued to rise on August 21, with an average price of 4,637 yuan/ton across 25 major cities in China, up 22 yuan/ton from the previous trading day.

"Why the price of the steel rises again and again in the off season. This is because of the increasing pollution control efforts in various regions, and production limits of steel plants have occurred from time to time, such as Tangshan, Handan, Xuzhou, Changzhou and other places.” Mr. Xu said. The effect of the steel curbs was directly reflected in low inventories. According to the survey statistics, the current social inventory and steel plant inventory have been lower than the same period last year.

" The price of steel at around 4,500 yuan/ton, already is at a relatively high price. A continued rise is not only short of basic cooperation, but the downstream is also unable to bear further rise in the price of steel." Mr. Xu said. Therefore, all parties should keep calm and rational expectations for future markets and should not see further bullish.

• [Editor:Wang Linyan]