Michael Shillakeri of Credit Suisse

Michael Shillakeri of Credit Suisse Talking about the predictions of foreign experts and analysts, including Michael Shillakeri of Credit Suisse and Eiji Hayashida of JPE of Japan commenting to FT, Yayan said, “It is hard to predict how much iron and steel prices could rise” and that the prices were already on an upward trend.

“Flat steel prices were around 450 but last year rose to nearly 700,” Yayan said. The hike in iron and steel prices mostly triggered by high demand in the Middle East and a global surge in raw material prices such as for iron ore and coal, he said. “The scrap metal prices were floating around 300 per tons and rose to 520 recently.”

It is normal to think that such an increase would be reflected in the iron and steel prices in all sectors, he said. Its is likely for steel prices to hit 900 per ton by the end of the year, like when the market experienced rocketing prices in 2008 flat iron prices reached 1,500 per ton. “It happened before and it can happen again,” he said.