Chinese construction steel prices pick up

Chinese construction steel prices pick up

Over the course of the past week, construction steel prices in China’s major markets fluctuated within what could be considered normal parameters. In the Shanghai market, prices increased sharply last Monday (October 24), but transaction volume decreased. Therefore, prices went down slightly to an acceptable level in the following days, and thus business activities picked up. This led to a minor price increase over the weekend. In the Beijing market, demand remained at a normal level. Influenced by the Shanghai market, prices went up, especially on Tuesday and Thursday. In the Guangzhou market, prices rose considerably. However, the arrival of new batches of products pressured traders to cut their selling prices. This in turn led to a decline in market prices over the weekend thanks to low transaction volume. The average prices in major markets, as well as the change over the course of the week, are as follow: 20mm HRB335 rebar rose RMB 50/mt to RMB 3’003/mt ($370); 20mm HRB400 rebar rose RMB 20/mt to RMB 3’133/mt ($386); and 6.5mm Q235 high speed wire rod rose RMB 53/mt to RMB 3’070/mt ($379). The following reasons caused the fluctuations in prices: 1. Traders’ confidence recovered after the meeting held by China Iron and Steel Industry Association (CISA). 2. Transaction volume slightly picked up; thus, inventory levels declined compared to those of the previous week. 3. The increase in flat product prices enhanced the confidence in the construction steel market. Some traders think that prices will further increase, as the adverse factors have come to an end. Others feel that market prices will remain at the current level with slight fluctuations. They point out that the time is not quite right for a rebound. Generally speaking, if other market factors remain unchanged, construction steel prices in China’s main markets will be in an upward trend with fluctuations. SteelOrbis Shanghai