With the slowdown in China’s economic growth, the country’s steel prices have been under huge downwards pressure for nearly five months.
However, the situation improved after the National Development and Reform Commission (NDRC) unveiled about RMB 1 trillion (US$157bn) worth of infrastructure projects. In the face of the low price, some steel traders started to buy steel products for winter reserves.
Steel prices have started to rebound since early September. Behind the rapid rebound is the rise in the price of raw materials. In September alone, the price of imported iron ore rose about 30%, while that of domestic iron ore increased 16.6%. On the spot market, the price of coke stabilised and rebounded by 3% in some regions, while price of coke futures rose about 23% in September.
Source: China Metals e-mail email@example.com