Construction steel prices in China expected to fall in Q4

Construction steel prices in China expected to fall in Q4

According to Chinese steel industry experts, the price of construction steel in China in the fourth quarter of this year is expected to remain stable, then fluctuate and later fall as winter approaches. However, no drastic fall in prices is expected. The steel sector experts are basing their predictions on three main factors. First, they believe that the Chinese government's macroeconomic policy will guarantee rapid increase in investment growth, although it is not expected to grow more than third quarter investment. Secondly, a large number of new construction projects begun in the third quarter are expected to ensure continuous domestic demand in the fourth quarter, although construction projects in northern regions of the country will stop for the winter season. Thirdly, despite the growth of domestic building materials output, expected to remain at about 15% in the fourth quarter, being lower than in the same period of last year, the production capacity of rebar is still large and the prices of raw materials are quickly increasing.