Chinese social housing increases the steel prices

The increased construction of Chinese social housing increased steel prices. Compared to late June prices of less than RMB 4700/mt ($727.55/mt), the prices of rebar increased above the level of RMB 4900/mt ($758.51/mt) this week. While, the price of iron ore increased by $10/mt to $183/mt.
 
China's crude steel outputs showed a stable growth so far. In late June, the domestic average daily crude steel production reached a record of 2 million mt.
 
The reasons caused such situation: on the one hand, the total steel inventory decreased by 25% as compared to March this year. On the other hand, the high steel demands due to the social housing construction.