Last week, rebar steel has really an excellent performance in China as the price has reached the highest level in a period of one and a half years.
More specifically, the rebar main contract 1105 has opened last Monday at 4801 points and closed on last Friday at 4903 points while the 4918 points during this period has created a record high in one and a half years.
According to analysts, there are two many forces pushing the rebar price upward in the spot market in China: one is national policy and the other is capital profit.
On the night of January 14, the People’s Bank of China has decided to increase RMB deposit reserve rate by 0.5% since January 20. As the policy has been publicized, the adjustment in China’s steel market may follow closely.
In fact, ever since last October, rebar price has always been on the upward trend. The main reason may be most likely the firm support from high cost. Not only labor cost is rising, but also prices of all materials, such as iron ore and coal are rising for China’s steel industry.
Because rebar price is reaching new high again, from the perspective of macro condition, it’s like that this January rebar price will keep surging.