Steel price surges on infrastructure projects launch

It is reported that China's primary metal industry is becoming a little bit strong after consecutive months' shrinking demand and stockpile. Some raw material supplier and market researchers even take the price rising, output increase and iron ore stock drop as the evidence of the demand recovery.

Mr Li Jing Managing Director of JP Morgan Chase & Co said "Their conclusion is premature and it will take some time for the financial market to resume. He said that however, the price is likely to face another drop for the uncertain demand of key downstream industries like auto and home appliance.”

He also considered the rebounding price is adverse for China on the 2009 to 2010 iron ore negotiation and may postpone the result coming date. Now, it is reported that, China was struggling for a price cut of 40%, but CVRD only agreed 10%.

(Source: http://www.eastday.com)