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Monday opened on an auspicious note an encouraging 1% gain in steel price in China. After having shed excessive flab since lunar holiday turnaround was always on cards.

Supply demand mismatch had played truant over the last 1 month. Excessive inventory accumulated by mills and traders before and after Lunar Holiday

Although it would be premature to verdict sustainable upswing but inherent strength of demand was never under cloud. Slew of infrastructure, construction and rail projects were on the anvil adequately funded by USD 150 billion package announced last year. However its take off was delayed owing to intervening political change of guard and winter.

Summer season entails peak economic activity in China and so the economy and industry is on the brink of unleashing accelerated activity.