Inner Mongolia saw its finished steel prices continue to go up in July, but still failed to match the year-ago level, said the Inner Mongolia Development and Reform Commission on August 10.
The prices are expected to witness a new round of pickup in August.
Domestic economy demonstrated remarkable resilience at the post-virus period and remained on the course to recover further. This accelerated construction projects and led to a remarkable rise in sales of steel products.
Meanwhile, the rising prices of raw materials like iron ore and coke also lent strong support to prices of steel products.
In July, the prices of building steel and plate averaged 3,800.28 yuan/t and 4,212.93 yuan/t, up 0.35% and 1.98% from June, 2020.
However, the average prices respectively went down 8.13% and 6.33% compared with July, 2019.
In addition, round steel (φ16mm, HPB235) and stainless steel plate (1.2, 304/2B, cold-rolled) traded up at 3,925.42 yuan/t and 15,683.33 yuan/t, up 0.82% and 1.35% month on month, but down 5.71% and 3.44% from the year prior.
As the peak demand season is approaching, and the infrastructure investment and real-estate demand are expected to be released, the steel market may go on a strong course.
The supply will be even restricted, in that stricter environment protection and pollution crackdown are about to be carried out, and maintenance of some mills are on the way.
The steel products within Inner Mongolia region is forecast to inch up in August.
(Writing by Rebecca Liu Editing by Tammy Yang)
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