According to Mr Liang Taigeng head of Shanghai Hualei a specialized rebar trader “China's rebar market would differentiate in October, with demand for the first class inspection free resources picking up and second or third class materials unmarketable.”
He said that stocks kept piling up during the 8 day holidays due to persistent production at steel mills and demand in the period stayed low resulting in mounting up supplies and exerting great pressure to late market.
As a result, he speculated that domestic rebar market price would keep heading downward in early and mid of October and would not turn better until the Q2 of next year.
Mr Liang said the price downtrend would halt and tend towards stabilizing after touching bottom with down stream demand turning better than September in late October or November, thanks to the speeding up construction of key infrastructure projects and warming up property market.
He said that "Supply and demand relationship is still the key parameter ruling construction steel market trend. And the sluggish condition would not improve until the situation of high production huge stocks and low demand' turns better."