China has no affect on UK steel prices, claims Corus

The slowdown in demand for raw materials in China will not result in UK steel prices falling, Corus has claimed.
The claim was made in response to Derek Tordoff, director general of the British Constructional Steelwork Assoc-iation, who said: "If demand is slowing in China, then it should reduce pressure on steel prices in the UK."
But Corus media relations manager Mike Hitchcock said: "The Chinese government is exercising tighter control of the economy to prevent overheating. However, this doesn't change the underlying fact that the country is experiencing very strong economic growth and hence strong demand for steel and other products."
He continued: "China is not the only economy influencing steel demand and prices. Activity is good in the US (price increases in Europe have been modest, compared with those experienced in the States) and the central European economies are set for 4% growth this year and next. The worldwide shortage of steel-making raw materials will persist even if China cools slightly.
"Although there have been some downward price movements in the Chinese market recently, market fundamentals indicate that this will not continue," he added.