According to a report on www.shihua.com.cn, if the European sovereign debt crisis gets worsening in the second half and causes global economy to go to bottom again, rebar price may fall back to a range of from CNY 3500 per tonne to CNY 4200 per tonne.
Based on report by Futures Daily, China steel product price will keep weak movement in the second half. On one hand, the European debt crisis has caused commodity market convulsions, which benefits the iron ore talk for third quarter and the cost decrease in steel mills.
On the other hand, the government strict control measures on housing industry will likely be reflected on the housing price in the third season and then will have negative impact on construction steel demand which in combination with the high recorded market inventories of construction steel, will together press the steel price from rally.