Steel price upswing in Sept.

Steel price is expected to follow an upward curve in September, driven up by surging demand for steel in construction.

Steel market has seen more transactions since August, and the recent contractual steel price appeared to be remarkably higher than the forward price, further driving up the spot price of steel products.

Besides, the output of such construction steel as deformed steel bar and spiral-welded pipe may enter into a heyday in the second half of this year, signaling that demand may be spurred.

But steel plants have to bear pressures from the rising cost and the upcoming concentrated production. Though Baosteel has cut prices of some of its steel prices in the fourth quarter of this year with hot-rolled plate and galvanized steel coil respectively down 200-300 yuan/ton and cold rolling products even down 500 yuan/ton, it would not impact the upswinging steel price in the short period.