China's steel & raw material prices show signs of rebound
Time:Fri, 28 Jun 2024 09:43:43 +0800
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Prices of raw materials and steel in China are showing signs of rebounding. On the 26th, rebar and hot-rolled coils across major cities showed a slight increase. The spot price of iron ore also rose.
Market analysts attribute the recovery to recent cost-effective prices, which prompted downstream buyers to purchase, boosting trading volumes and stabilizing futures and spot prices. Taiwan's steel industry cautions that China's price recovery hinges on sustained demand, currently weakened by the rainy season and high temperatures.
Chinese research institutions highlighted that recent special debts are mainly to repay old debts, limiting financial support for new projects and increasing project delays. The market faces traditional off-season pressures, with increased supply and demand imbalances since June.
Despite high supply levels and weak downstream demand, some market support factors have emerged. Improved low-priced resource transactions and easing market pessimism may lead to short-term price rebounds. However, heavy rainfall and high temperatures continue to burden demand.
