OREANDA-NEWS. April 26, 2012. The domestic steel market was performing better than expected by the CE steel index with transaction values rising marginally, albeit at a low level. Liquidity in Europe, the United States, India, Brazil, Thailand and Russia was improving to varying degrees.

At home, market sentiment turned positive on the back of appropriate re-adjustments of relevant policies in a timely fashion and the increased supply of yuan-denominated loans.

However, the fragile momentum was unchanged. Railway infrastructure investment was just 32.6 billion yuan in February, even lower than the historic bottom of 36 billion yuan seen last August. Investment growth in the construction sector may peak over the second quarter after hitting a record 128.87 percent. The oversupply problem could persist for some time.