The reporter learned yesterday from the price department of Hefei City that in 2011 the price of major production materials in Hefei had risen to varying degrees compared to the previous year, and bulk commodities such as steel and non-ferrous metals were affected by the economic situation at home and abroad, and the trend was high and low. Since the second half of the year, they have been mainly oscillating and falling. Some chemical products, chemical fertilizers and energy prices have shown a steady upward trend. It is expected that steel prices will continue to rise this year, while non-ferrous metals will show wide fluctuations.

According to the monitoring conducted by the Price Monitoring Department of the Municipal Price Bureau, the price of steel in 2011 was high and low, and the overall price level was higher than the previous year. In this year, the comprehensive average price of 45 major steel products in Hefei was RMB 5,049 per ton, an increase of 9.8% from the same period of the previous year.

“The price of raw materials is still high, coupled with rising prices of water, electricity, and labor, and it is expected that the cost of steel will continue to rise. The state requires that the construction of affordable housing throughout the year must be completed, which will have a certain pulling effect on the demand for construction steel; the market expects national tightening policies next year. There will be some easing, and the downstream demand may have improved.” Analysis of the price department affected by the above factors, is expected this year, steel prices have increased compared to last year, the annual high prices will be in the second quarter.