Steel Prices to Get off to A Strong Start after the Chinese New Year

SHANGHAI, Jan 28 (SMM) – 

Rebar

Despite lagging demand recovery in the spot market, anticipation for peak season in March and favourable macro policies should shore up the 2305 rebar contract to 4,050-4,300 yuan/mt after the Chinese New Year (CNY). Rebar production is relatively low at present, reducing the risks of significant inventory accumulation.

HRC

Driven by improved profit margins and sales, as well as optimism over demand in the medium term, hot-rolled coil steel mills are passionate for production. As such, the supply may still have room to grow in January and February. Post-holiday demand recovery, coupled with favourable domestic policies and fading impact from overseas macro factors, are expected to buoy the 2305 HRC contract to 4,150-4,400 yuan/mt after the CNY holiday.