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Himfr.com Believes Steel Prices Have Hit Rock Bottom

2008-12-11 21:38 1095

BEIJING, Dec. 11 /PRNewswire-Asia/ -- Himfr.com (http://www.himfr.com/ ), one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, believes that steel

(http://www.hardware-wholesale.com/ ) prices have reached the bottom.

According to Himfr.com's analyst, with demand still catching up with the production surplus, steel (http://www.hardware-wholesale.com/buy-steel/ ) prices have remained low but the falling trend have been smaller. According to the steel market report, in November, the average domestic steel prices fell by 12.3%, a lower rate compared to the previous month.

Himfr.com's market analyst believes that steel prices have hit bottom, Despite steel (http://www.hardware-wholesale.com/products/ ) prices in November recorded a fall, with prices for coke remaining stable and prices for iron ore going up, further decline in steel prices is highly unlikely.

Downstream industry demand remains weak in the short run, in particular in the North where winter is not suitable for outdoor construction, which reduces the consumption of steel (http://www.himfr.com/hot-products/ ) and keeps steel prices low. On the other hand, China's commitment in the national railway infrastructure construction will increase steel

(http://www.himfr.com/hot-products/ ) consumption in the market in the long run.

Also, Chinese iron and steel enterprises are facing a bargaining opportunity as upcoming negotiations on iron ore are becoming favorable.

In the past, iron ore negotiations are usually carried out in November, but the negotiations have not started this year. Himfr's analyst sees this as a favourable opportunity for China's iron and steel enterprises. It is clear that due to the slowdown in demand for steel products, China's steel enterprises will need less iron ore

(http://www.hardware-wholesale.com/buy-iron_ore/ ), which gives them a upper hand in the upcoming negotiations. As China is rich in iron ore stock and prices for iron ore are already very low, it is likely that iron ore prices will go down further.

With three iron ore giants controlling the world's more than 80% market share, a sharp decline in prices is unlikely. Himfr.com predicts that prices for iron ore

(http://www.himfr.com/list-product-Industrial_Supplies-19000000-1.html ) will most likely drop by 30-40% and even 50%.

About Himfr.com

Himfr.com is a promising e-commerce company and a leading vertical search engine company in China. We provide an efficient, trusted search engine platform connecting small and medium-sized buyers and suppliers around the world. Our product search engine database includes more than ten millions products and our community (Trade Post) has published more than 1.2 millions buying leads.

Founded in 2005, Himfr.com focuses on two main products for global traders:

Product Search -- Product search is Himfr.com's flagship product and the leading B2B e-commerce search engine in China, serving small and medium sized enterprises in China and around the world.

Trade Post -- A leading community for global suppliers, providing suppliers with millions of buying leads and bridge them with hundreds and thousands of potential buyers online.

For more information, please contact:

Himfr.com

Room 610, Ximen commercial Building, 256 Xinhua Street,

Tong Zhou district, Beijing, China 100110

Tel: +86-10-5211-8138

Email: cs@himfr.com

Source: Himfr.com
Keywords: Machinery
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