In mid-September (September 11-20) this year, the average price in China of 16-25 mm HRB 400 rebar rose by 1.3 percent to RMB 3,808.4/mt ($538.4/mt), compared to prices in early September (September 1-10), as announced by China’s National Bureau of Statistics. In the given period, prices of wire rod, medium plate and angles gained 0.9 percent, 0.1 percent and 0.1 percent respectively, while prices of hot rolled coil (HRC) and 219 mm x 6 mm seamless steel pipe almost remained stable compared to early September.
The People’s Bank of China (PBC) cut the required reserve ratio (RRR) for Chinese financial institutions by 0.5 percentage points as of September 16, stimulating ferrous metal futures prices in China to move up in the first part of the mid-September period, while bearish sentiment started to prevail in the steel market in the latter part of the given period. However, more production restriction measures have been issued in late September to ensure good air quality during the National Day holiday and the autumn-winter heating season, boosting sentiment in the market and positively affecting steel prices in late September.