Chinese long steel market lacks support on demand side

Tuesday, 07 February 2012 16:14:00 (GMT+3)   |  

While long steel prices in the eastern and southern regions of China have risen up slightly in the past week, prices in the northern region have seen a small decrease. On February 6, the rebar futures 1205 contract at Shanghai Futures Exchange closed at RMB 4,331/mt ($687.5/mt).

Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.

Confidence still appears to be on the fragile side in the Chinese long steel market. Following the strong price uptrend witnessed in the previous week in the northern region, prices have softened slightly in the past week, with just a small rise seen in the eastern and southern regions. This has been due to lack of support on the demand side. As for the future market, some market players are looking forward to a more positive market trend in spring, while others are still skeptical about prospects for the market. It is thought that construction steel prices in China may trend sideways in the coming week.


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