China expected to spend $139bn on construction sector
Plate prices improved by US$7/MT on Friday (27 Oct), coming out of pressure for most of the week, says an industry report.
The increase seen on Friday in local market could be due an optimism seen in Chinese market for futures prices due to expectation of huge government spending on infrastructure and steel production cuts in Hebei, according to a report by Wirana Shipping Corp.
There is an expectation that China will approve over US$139 billion in new sovereign debts which will boost infrastructure construction. This has improved market sentiments in the steel industry.
As for the rest of the Indian market, imported scrap prices were reduced by about US$10/MT.
Domestic rebar market has been slow and prices were under pressure because of which secondary steel mills were not confident of buying new stocks.
Prices offered by ship recyclers remained at about the same levels but there was active interest from ship recyclers this week to acquire tonnages which has resulted in prices offered by ship recyclers being pushed up for some vessels being worked.
“Considering present parameters, we would expect prices offered by ship recyclers could firm up,” said the Wirana report. Fiinews.com
