China Raw Material Prices Will Be Bullish

The Negotiated Price of Iron Ore Will Be Increase Greatly in 2017 and Raw Material Prices Will Be Bullish.

Raw material market price continued the up trend on 28^th. The price of iron ore and billet steel increased obviously. And the price of pig iron, steel scrap and coking coal increased steadily.

Tangshan mainstream plain carbon steel price increased RMB 30 per ton, and finished product prices continued increasing. The billet steel resources shortage made the price increasing in steel mills. Chinese and imported iron ore prices continued the up trend and offers at ports increased, so sellers were reluctant to sell out their goods. Chinese pig iron prices increased in south and decreased in north.

Plants in Jiangsu and Hebei areas has been suspend production because of the environmental issues, and others has been prepared to stop production. Some plants stopped receiving goods, so the prices be reduced. Chinese pig iron market prices increased steadily and transaction was weak. Chinese coking coal prices increased steadily and transaction is good.

Overall, as the environmental protection policy strengthened, some raw material resources was short. And overseas supplies changed the negotiated price in 2017, which made a bullish market. It is predicted that, supported by cost prices, the raw material prices will be rise in a short time.