New Year begins with an explosion of prices in the Chinese steel market

On the first working day of 2013, the consumer price index in China increased by 1%. For many experts, this was not a surprise, because already since November 2012, the Chinese domestic market and the metal rolling demonstrates enviable growth.

On the wave of optimism, the price of iron ore and scrap metal jumped sharply. The third month in a row, the price of metallurgical raw materials in China is growing by 20% monthly.

The Chinese government announced an ambitious investment plan of more than $ 160 billion in the country's infrastructure projects. The domestic market reaction immediately followed - the consumer price index jumped by 6.3% in December 2012, and the reserves of the metal rolling in the warehouses of the largest suppliers decreased almost half, to 12 million tons, which is insufficient for China.

However, the growth of steel production in China in 2012 will probably be no more than 6%, against 8.9% growth in 2011 - there is a fall and it is quite tangible. As we have already reported, daily production steel in September - November 2012 was at the level of 1 million 930 thousand tons. In December, Chinese daily production rose to 1 ml of 950 thousand tons, but this figure does not yet reach the traditional 2 million tons of steel sold a year earlier.

Heating and boiling of the Chinese market will occur until the Chinese New Year, the day of the first moon on February 9, 2013.