Large Chinese fleeting will continue to increase steel production

Chinese metallurgical companies attempted to raise spinal prices for metal rolling. The company of Henan Anyang Steel has announced an increase in prices for 50 yuan -rolled steel per ton. Steel prices began to rise last week and showed the best dynamics this year, today Steelhome.cn writes.

Anyang Steel increased the production of steel almost twice after put into operation a new domain furnace in March.

Nevertheless, the latest increase in steel prices is not growth, and a rollback of positions to the previous level. Yesterday, Wuhan Steel (Wisco) after a repeated decrease in prices for several months in a row, announced the rise in price of hot-rolled and cold-rolled steel in August 2013. This is a rebound from the bottom, but not yet a rise, writes the Chinese edition.

The revitalization in the domestic market of China coincided with the end of the off -season and the periods of the suffocating heat replaced by rainfalls with floods. The China steel plants will have to go through a difficult road before economic incentives proposed by the government earn. The Chinese market today is a bubble of 4 trillion yuan gspoddroty and ready to burst at any time.

In the first quarter of this year, Anyang Steel received 392 million yuan of pure loss and, according to analysts, will still increase by analysts by the end of the year. However, large metallurgical companies will continue the production of steel at maximum capacities, since the reduction or stopping of production will lead to even greater losses, left without state funding, say in Steelhome.cn.