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Steel prices rise for 4th week amid strong demand

Domestic steel prices have been rising for the fourth week in China, boosted by growing demand, analysts said.

According to China Iron and Steel Association (CISA), domestic steel prices surged by almost 20 percent in the first quarter. The domestic steel price index rose to a record high of 142.31 points in March, up 32.51 points, or 29.61 percent from the same period last year.

The price was pushed up by high demand on the domestic market, where growth in steel output remained comparatively slow, said the CISA.

A rise in fuel prices that resulted in higher production cost also contributed to surging steel prices, said the CISA.

Analysts said there was still a price gap of about US$100 to US$200 per tonne between domestic and international markets, which would continue to be at play, and push up the domestic steel prices in the near future.