Steel prices in China rose 39.9 percent year-on-year in the first quarter, triggered by increasing domestic demands as well as continuous growth in prices of raw materials, energy resources and the international steel market.

The Ministry of Commerce said Monday that investment in infrastructures and industrial production was soaring recently, which had brought rapid development of trades consuming large quantities of steel, such as construction, machinery making, auto manufacturing, railway building and container production.

Meanwhile, the increase of steel output had somewhat slowed down the price surge. Statistics show that steel output in the first two months reached over 43 million tons, 31.7 percent higherthan the same period last year, and imports also rose 21.5 percentto 6.6 million tons.

Experts predict that steel prices will continue to rise in the second quarter, with the consumption still rising and the supply of raw materials and fuels likely to remain insufficient.

Source: Xinhua