Neither going upward or downward, that is the dilemma China’s steel market is now facing.
According to latest market report, the demand in this winter has begun to decrease, while the support from production cost is strong as usual, and the inventory pressure is still within the limit of endurance of the steel market.
Therefore, the general condition of China’s steel market in recent period is that stableness is maintained due to all the contradictory factors.
Take Shanghai’s construction steel market for example, the prices haven’t changed much in last week. Recently, the secondary qualified rebar price is quoted at CNY 4600 per tonne, and the third qualified rebar price is quoted at CNY 4780 per tonne, presenting almost no change.
On one hand, leading Chinese steel enterprises continue to bring up prices, which in turn keep the purchasing price of steel traders at a high price. So it is naturally spot steel products have no room for price decline.
At the same time, capital reserved by all market participators have become less and less as the end of the year is coming and also the difficulty caused by shrinking winter demand has become more and more obvious, so it is true that China’s steel price has not much room for price rise either.