It is reported that most steel people in China are in wait and watch mode under the high cost and inventory thus ignoring the price adjustment move by mills.
Industry insiders unveiled that steel inventory soared during Spring Festival, especially for that of construction steel which is the major factor restricting steel price rise.
According to Mr Peng Yansong with 10 years working experience in Hai Cheng Dongsi Section Rolling Co "I’m not optimistic on the present steel market."
Mr Peng worry just reflected the present domestic steel market situation, high cost and inventory.
Mr Yin Jimei a top analyst said that the present steel cost is inverted with mills ex work prices. As a result, there will also be a price inversion between mills' ex work prices and traders' sales prices.
Luzheng Futures analyzed that last week the ex works prices of 15 steel products were higher than their market offer. Promoted by the good anticipation of cost and steel demand, leading Chinese steelmakers stabilize the price or even increase their offers which also lead to a price inversion.