Workers weld steel columns at the construction site of the China Eastern Airlines base project undertaken by China Construction Third Engineering Bureau Co., Ltd. at the Beijing Daxing International Airport in Beijing, Dec. 17, 2020. (Xinhua/Cai Yang)
BEIJING, May 26 (Xinhua) -- The fundamentals do not support the continuous rise in the domestic steel prices, said Lv Guixin, an official of the Ministry of Industry and Information Technology (MIIT).
Lv made the remarks at a Tuesday conference held by the China Iron and Steel Association (CISA) in Nanjing, capital of east China's Jiangsu Province.
At the conference with attendees discussing the steel capacity replacement, Lv did not give more details about his conclusion.
According to the CISA, the China steel price index (CSPI) has surged 23.95 percent compared to that at the beginning of the year.
Since this year, China's economy has continued to recover steadily, and steel demand has increased significantly. To be specific, the steel demand from the construction industry has increased by 49 percent and that from the manufacturing industry has soared by 44 percent, said the CISA.
Regarding the recently sharp rise in commodity prices, the Chinese authorities have admonished key enterprises in the bulk commodity sector to rein in market irregularities and keep commodity prices stable, according to the National Development and Reform Commission (NDRC).
The NDRC, together with other four relevant government departments, reminded enterprises with market influence in sectors such as iron ore, steel, copper and aluminum at a Sunday meeting to run in accordance with laws and regulations and keep the market prices in order.
The recent price rally in commodities is partly driven by the transmission of global price rises, but excessive speculation in the market has also pushed up the prices, said the meeting.
During the night trading hours of the domestic futures market on Tuesday, the benchmark rebar futures and hot-rolled coil futures both fell about 2 percent. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
A single purchase
