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                   THE DEMAND FOR STEEL AND IRON ORE REMAINED BUOYANT AFTER 3 DAY CAUCUS

The viewpoint for Chinese steel and iron ore demand continued buoyant, after a three day rally that raised the raw material to an eight week high demand. Since March, the steel inventories of trader’s have decreased unceasingly as the construction work is in full swing in China but by April, production has been increased to the daily highest average by Chinese mills in four years. According to a trader, almost all the websites related to this work would be full of activities as the best season and time for steel demand could last till early July or the beginning of the summers in China. On Wednesday, October rebar which is the highly traded one mounted at 3677 yuan i.e. $577.23 a tonne faced a cursory loss during its deals. Although on Tuesday, the construction steel product moved 3715 yuan which was 1 and ½ week greater. In April, crude steel was produced 2.56 MT a day by Chinese mills amongst firm demand. The delivery prices of iron ore dropped to $67.28 a tonne for 2.4% to China’s Qingdao port.

• [Editor:janita]