China steel market continues to slide further due to the negative sentiments in futures and lowered steel prices. It should be noted that iron ore prices had started rising in Chinese market since 2016 and moved till the beginning of 2017.
The stumbling effects are being linked to the over supply of the material because of large quantity of imports in China, the Feb’17 imports are well higher than it were the month earlier, in China, especially the higher grade material have been much in demand recently due to the increased development and construction activity that regained after an interval of a big holiday season.
Experts that believe the prices will continue to go down fear the worst saying prices may go much lower in near future, on the other hand some have different opinion and are hopeful of prices picking up after a while once the supply glut clears off.
Billet
Billet was traded at 3,150 Yuan (USD 456/MT) including VAT unchanged from yesterday’s price.
Dalian Commodity Exchange’s
Close: 661.50 Yuan (USD 96/MT) up 0.50 Yuan (USD 0.10/MT) unchanged from yesterday’s price.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,425 Yuan (USD 496/MT) today down 69 Yuan (USD 10/MT) yesterday’s closing price.
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