According to latest market report, the end demand for steel products in Shanghai has seen no improvement in recent period. Besides, social inventory volume has begun to increase substantially.
The reason why the current steel price in China’s market is able to main stableness is that production cost and ordering price provided by leading steel enterprises remain high.
Relevant monitoring statistics has shown that construction steel price in Shanghai has already revealed sign of decline.
Rebar is the typical product which is always to suffer the decline first. Until recently, the secondary fine quality rebar price is adjusted to CNY 4560 per tonne, down by CNY 40 per tonne within only one week. The situation is even worse with the third level fine quality rebar, which has encountered a decline of CNY 60 per tonne in the same period.
Market analyst told the reporter that the overall demand in last December is far weaker than that of previous period. Especially in the last two weeks, transaction volume is far from being satisfactory.
However, in contrast, raw material prices remain high, not only for crude steel, but also for coke, iron ore and steel crap, which is a firm support for the stableness of recent steel price.