Steel prices improvement has progressively accelerated in November so far. The triggering point has been renewed production cuts to rein emission Besides, inventories of rebar and wire rod have decreased by 36% and 51% from the peak levels in March. The momentum has fanned shortage psychosis leading to sudden spurt in demand.
The intensity of blitzkrieg can be gauged from a sudden recess in buying of billets in the last 2 days in Tangshan as the surge was too much to be fathomed.
Market sentiment has improved. Dealers are very confident of the future market. It is expected that the market price will remain at the crest with minor aberrations till the year close.
On November 10, the mainstream price for high quality second grade and third grade rebar stood at CNY 4500 per tonne and CNY 4670 per tonne in Shanghai respectively, up nearly 9% from the beginning of November.