Stepping into September, construction steel price in China went up quickly, and inventory of steel products has also declined by 26% as compared to the high level in previous period.
Construction steel price in September have seen a good start, followed by the recovery of end demand. But the too fast upward trend also has negative effect as the balance between suppliers and demanders seem to be stalemated. Therefore, the adjustment and upward are still mixed and will continue.
Recently, the second level rebar price in Shanghai market has been increased to around CNY 4060 per tonne up by CNY 130 per tonne in only one week and the third level fine quality rebar price has been also increased to around CNY 4150 per tonne up by CNY 120 per tonne in the same week.
Following the previous fall, the upward trend of steel price is resumed so quickly and so sharply. Therefore, it is reasonable to say that the recent rebound has created a new record high.
But Shanghai is not the single one. As said by insiders, construction steel spot price in the whole domestic market of China has ended the fall and begun to rise. Largely, per tonne of steel products has been raised by CNY 70 to CNY 150.
In the first half of last week, driven by the bullish situation in futures market, construction steel price in major markets such as Shanghai and Beijing is pushed upward first, leading the whole market to better conditions. While in the second half of last week, due to the influence of energy conservation and emission reduction policy and Shagang Steel’s bold action in increasing factory price, market confidence is strengthened significantly. Thus price will continue rising.