Chen Xiang Yang, deputy general manager of Chinese steelmaker Shandong Steel Group, has said that the government policy of power restriction will help push up prices of finished steel in the fourth quarter, with prices first likely to indicate an upward trend but then dropping down. In addition he said that China's construction steel market will perform better than the domestic steel plate market.
Mr. Chen said that, even if the current supply and demand situation in the domestic steel market has improved, the oversupply situation is still severe. He remarked that China's domestic steel market is currently on an upward trend with slight fluctuations, with the price rebound in September mainly caused by restrictions on power supply. Meanwhile, Mr. Chen stated that steel prices in the fourth quarter will rise on the back of the following factors: continuing limitation of power supply for steel mills, punitive power supply charges, reduced stocks in the domestic steel market and increasing housing construction activity.