It is reported that 95% of steelmakers in Hebei province has resumed production recently, while a few days ago the switching off power campaign was ongoing there. The market performance showed the limited impact of production and electricity limit activity on correlation of supply and demand.
The sharp rising steel price by previous stimulus of production limit has dropped over half months which forced Shangdong Iron & Steel, HBIS and Shougang to decrease part of steel prices.
On September 27th production limit activity hasn’t effectively affected market supply and demand balance with continuing decline of steel price over half months. The steel prices decline to increase even after three giant steelmakers, Baosteel, WISCO and Angang raised October EXW prices.
The EXW price of steel has peaked down these days. Statistic by Mysteel showed over 20 steelmakers has decreased ex-works price on 26th and 27th, some of which continued downturn in two days. HBIS announced to decrease ex-works price of wire rod by CNY 50 per tonne of rebar by CNY 100 per tonne with a fall by CNY 140 per tonne of October rebar and bar according to Shougang on September 27th.