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With inventory being consumed gradually, metallurgy industry has shown recovery in China. It is reported that the market prices of building materials have increased a little bit with the increase rate about RMB200/mt (USD29/mt) compared with that before Spring Festival. Moreover, many market participants hold positive attitude towards future market. As a result, most steel mills have resumed in Sichuan province including Panchenggang Steel, Dagang.

 

Since the second half year of 2008, the building materials market performed badly with the market price sliding sharply. The market, however, has changed recently, and the market price of building materials has been up to RMB4,300/mt (USD632/mt) from RMB4,100/mt (USD603/mt). At present most steel mills have restarted production in Sichuan reported.