The latest offer of rebar has reached more than CNY 5,000 per tonne.
Ever since the very beginning of 2011, rebar price has already presented a round of abnormal rise, with the offer of steel traders becoming higher day by day.
In fact, since last June, rebar, which is the most used steel product in construction programs in China’s domestic market, has already begun a new round of price increase. The price per tonne has increased from CNY 3,600 to over CNY 5,000 until now, with a rising level of nearly 40%.
Correspondingly, the price of rebar futures in Shanghai Futures Exchange has already had a big rise, as the price of main contract increased sharply from CNY 3,700 per tonne to CNY 5,200 per tonne, also with a rising level of nearly 40%.
However, the current price rise has no support from China’s steel market as transaction volume is still low.
On one hand, the Lantern Festival hasn’t yet passed, and market demand hasn’t fully recovered yet. On the year hand, steel prices are rising all the way.
China’s steel traders have to wait to see whether this round of price rise is based on strong demand.
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(Source: www.steelguru.com )