OREANDA-NEWS. March 21, 2012. China largest private steelmaker Shagang announced a policy to lift the price by 50 yuan a ton for wire rod, by 20 yuan a ton for rebar and by 150 yuan a ton for bar in coil, effective between March 10 and 20. Shagang move to raise its prices is likely to boost market sentiment in the north of the country. 

Steel majors like Wuhan Steel and Baosteel would also issue higher offers for April shipments with a recovery in downstream demand. The recent falls in iron ore prices appear to have something to do with early signs of excess supply caused by a surge in the production of domestic iron ore.

Domestic steelmakers are expected to see improvements in their performance as the iron ore costs drift lower while the steel prices begin to rebound.