Nanjing Steel sees bottoming of steel prices

Bloomberg reported that Nanjing Iron & Steel United Co, the Chinese steelmaker part owned by billionaire Mr Guo Guangchang, said steel prices in the world's biggest user of the alloy have bottomed and output may recover on the state's stimulus package.

Mr Yang Siming chairman said in an interview in Shanghai, where he was attending an industry conference that lower raw material prices will allow producers to raise output. He said that "Next year, our construction-steel sales will benefit from the government's plan to boost infrastructure investment."

Nanjing's Mr Yang said "Steel prices have bottomed. He said that the company's production this month would recover to October's level after four months of declines."

Mr Qi Xiangdong the association's vice chairman said "The steel market will lead other industries in recovering under the government's stimulus plan. The industry group represents most of China's large state-owned steel mills, including Baosteel Group Corp the largest mill."

According to the China Iron & Steel Association, China last month announced a CNY 4 trillion stimulus package to revive growth in the world's fourth-largest economy. All Chinese steelmakers were unprofitable in October after demand from manufacturers plunged.

Mr Yang's said echo remarks recently from Mr Lakshmi Mittal chief executive officer of the world's largest steelmaker, who said steel demand may rebound next year and the company wouldn't deepen output cuts.

information from www.steelguru.com