Several local governments publish targets of tackle industrial overcapacity, reduce the capacity of coal and steel industries by a large margin. Under the condition of supply quantity decrease sharply, futures and spot market had a sharp rebound, cost center up. The rising price go against the new projects.

Near the end of the year and continuous low temperature force the suspend of the projects. Bulk purchase less and less, cause the high price.

Will the price go up in the next months? The answer is yes, the government’s new policy is intensify reduction of the capacity. Maybe the demand will goes down too, but it will take time.

So if you have the project on hand , purchase materials as soon as possible. The earlier you action the more money you saved.