International suppliers are raising iron ore prices. But as experts have pointed out, this does not necessarily mean a rise in steel prices. In the first four months of this year, the price of imported iron ore in the Chinese market rose by 26 percent, which pushed up steel prices for a time.

On April 15th, the price of deformed steel bars rose to 43-hundred yuan per ton in the Shanghai market. But since then, the steel market has seen a continuous fall. The price of deformed steel bars dropped by over 10 percent to only 39-hundred yuan per ton. Experts attribute this to the demand change caused by recent policies.

Liu Qiujun, Chief analyst, said, "The government's structural adjustment policies have greatly pushed down investment in infrastructure. Also the tightening policies to curb the real estate market have dampened demand of property developers."