Prices have lately started to increase in the Chinese domestic market. Many steelmakers in China consider the trend is only a temporary rebound. Generally, there is a lack of optimism among steelmakers as regards the price situation in the second half of the year.
Shagang Group's sales director for the Hangzhou district has stated that the current uptrend is temporary because downstream demand is not indicating a fundamental improvement, "There may be a further drop in the future," he said Eastern China-based Shagang Group is one of the largest construction steel producers in the country. The sales director said that due to the rainy season, some construction sites were obliged to postpone work. With the rainy season having finished, prices have shown a rebound and construction sites have started purchasing, giving the impression that demand is increasing.
In addition, the Shougang official is not optimistic about the prospects for construction steel demand, given that high temperatures and hurricanes in August will have a negative influence.