Domestic prices for raw materials to rise no longer

摘要

Import prices for iron ore added 6% in China in the first 20 days of October.This was due to a rise in steel product prices, which in turn wascaused by a surge in quotes of coke and coking coal. Despite weakdemand for finished products, steelmakers have to reduce selling pricesto maintain positive sales margins. In all likelihood, the Chinese marketfor iron ore will still see the price fluctuate in November-January – likelast month, there will be speculations on the one hand and insignificantactual demand amid oversupply on the other hand. We estimate thatprices will hover within 1?5%. Domestic prices will directly depend inthe Chinese index because no significant changes in the exchange ratioare expected.