Chinese construction steel market to hold steady

It is reported that construction steel market was unexpectedly to present a smooth trend since Spring Festivals.

Mr Liang Taigeng GM of Shanghai Hualei Enterprise Development Co Ltd forecasted that the future rebars and wire rod market would level off in recent period, but to rise with fluctuations later.

Why Mr Liang believed the market would run like that?

He analyzed that Shanghai market was in face of high inventory and low-demand situation. And that of rebar climbed above 0.9 million tonnes in local area hitting a new record high even most of the construction sites haven't resumed operation yet which restrained the construction market prices to move up.

Meanwhile, the prices would not decline also, because the prices for raw materials were still perched on a high track, like ore price was lifted by CNY 50 per tonne in some areas. Besides, the purchase costs were on the increase, so construction prices in spot market would not evidently fall down.

Mr Liang, to the future market held that it may rise with fluctuation in later period. Along with the weather gets warmer and warmer, some construction sites would start operation after entering March especially in later March.

Furthermore, the high level inventory is going to get improved after a period of de stocking which may lay a solid floor for the prices to edge up in later March or April. Traders also have to pay concerns on the changes of governmental macro-policies and uncertain elements which could influence the market.

Sourced from MySteel.net

• [Editor:editor]