China's steel spot prices jump while future prices down

Back from Spring Festival Holiday, China’s five major steel product prices jointly jumped with ranges from dozens of yuan RMB to two hundred yuan RMB. Transactions slumped amid continuous increasing steel prices. Meanwhile, future market ran in a contrary way. Yesterday, deformed steel bar 1605 contract closed at CNY2104, slipped 2% from last trading day. Steel billet price in Tangshang province, China dropt CNY150/mt to CNY1,950/mt，but still CNY270/mt higher than that in February.

 

Steel market is predicted to move with week demand, as nobody want to buy at a high price. Thus, steel prices won’t keep growing, what all market insiders know.

 

As per demand, the government’s work plan is similar with that of last year. The plan includes 6.5-7% GDP growth rate, 3% rate of deficit, 500 billion RMB investment for infrastructure construction, 800 billion RMB investment for railway construction, 1.65 trillion RMB investment for road construction.

 

Prices of Chinese major steel products on March 9 are listed in below chart: