The price movement Chinese long product market in last in last 6 days, ie since last high on November 11th 2009, signals ominous clouds on the horizon although this reversal is being attributed to slowdown in construction activity due to heavy snow fall in some parts of China.
The changes in Chinese Long Product Price Index CLPPI, which although lost only 37 points or 09.6% during this period, reflects that long products prices in Chinese domestic market are in negative sentiments pointing to possible downward correction in coming days.
Chinese construction steel price started to rebound in October. The trend of increase did not last for long as both the demand of spot steel impacted by the bad weather and the adjustment of rebars price caused the reduction of the price. However, market players believe that the rebars price will rise because of the increasing cost and recovering market.