Starting from early Aug., steel price began to see slump after 16 weeks’ consecutive increase from Apr., which aroused “panic” amid traders.
On Aug. 19, steel market price was still in the course of downtrend. 20mm II grade rebar price dived to CNY3740 per tonne on Aug. 19 from CNY4540 per tonne, the highest record on Aug. 4.
An analyst regard current steel price slump to be a reasonable correction.
A marketer said that price decrease would terminate at a reasonable level in light of the booming demand, constrained supply, rising cost and positive economy development in the future.
In the market downturn, Ansteel brought up ex-works prices of most products (excluding HR products) in Sept. by CNY150-450 per tonne on Aug. 19. Of which, prices of medium plate augmented by CNY300 per tonne, medium ship plate by CNY450 per tonne and heavy ship plate by CNY400 per tonne.
Steel futures market is another factors giving birth to massive ups and downs in spot market. Currently, frequent price adjustment of certain mid and small-scaled steel mills that follow steps of futures market added volatility in steel market.
The analyst said that marketers shouldn’t be pessimistic towards the future market, and the market price may head up after current downfall given the demand from downstream industries remains firm. Although positive toward future market, market watchdogs don’t expect steel price to reach the highest record of Aug.4.
Source: www.steelhome.cn/en