(Yicai Global) Nov. 24 -- Supply and demand fundamentals do not support substantial gains in steel and coal prices even though prices are rising quickly due to a number of factors, said an official at China's top economic planner and price setter.
The coal and steel industries have been affected by considerable excess capacity in recent years, the official from the National Development and Reform Commission said yesterday. This year, they have seen significant improvement in operating conditions amid accelerated efforts to cut capacity and ongoing implementation of relevant measures, he said.
The official made his remarks at the signing ceremony for 2017 medium- and long-term coking coal contracts between Shanxi Coking Coal Group Co. and six major steel groups -- Hesteel Group Co., Shougang Group, Ansteel Group Corp., Baosteel Group, Magang Group Holding Ltd. and Hunan Valin Steel Co.
The contracts indicate the companies' rational judgment about market trends and that they are putting more emphasis on medium- and long-term strategic interests and seeking to achieve mutual benefits and win-win outcomes through communication and negotiation, the NDRC official said.
