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It is reported that in the past week, China construction steel price went into a downtrend correction on the whole, while HRC and CRC showed strong in line with global market evident recovery.

Lack of release of downstream demand is believed mainly responsible for the still downhill construction steel market, setting traders in a bitter waiting.

On the contrary, HR product prices were evidently pushed up by the market players whose confidence swelled by the boost of export, triggered by the growing global movement when stock was rebuilding across the world. As for CR product, it also eyed an apparent hike promoted by the clamorous market.

It is analyzed that the government fiscal investment of 2010 is mainly targeted at projects under construction an indication that new projects this year will be limitedly financed directly affecting the release of demand for construction steel.

In comparison with dynamic construction steel market of last year which was energized by infrastructure construction projects, 2010 will eye a relative lower growth. Moreover, capacity has gradually formed in the pursuit of high profit in former period, and is poised to release, leading to higher inventories in all of the country and damping down the traders' confidence to push the prices.

Sourced from www.xinhuanet.com

• [責(zé)任編輯：editor]