As of September 16, the steel composite price index for the Chinese domestic market issued by the China Iron and Steel Association (CISA) increased from 99.24 points in the previous week to 99.39, indicating a rebound of 0.15 point.
Some market analysts have attributed the increase in the CISA’s steel composite price index in the given week to the impact of the Chinese government’s recent approval of a batch of infrastructure projects. However, other market players stress that the slight rebound is far from representing a complete recovery of the steel market. Lu Jianguo, president of Wuhan Iron and Steel Material Association, stated that initiative measures undertaken by some large mills in China and other adjustments by government have played a significant role in the stability as well as the rebound of domestic steel prices.