SHANGHAI, Mar. 15 (SMM) - The steel market continued to drop today. Prices in Beijing and Hangzhou fell by RMB 30/mt, and in Guangzhou and Nanning fell by RMB 10-20/mt. But Steelease sources report some markets improved. Some market players in Hangzhou restrained supply to rebar orders above 500 mt; transactions from Liuzhou Iron & Steel improved. Some cargo holders in Shanghai sold more than 1,000 mt of high speed wire rod, and restricted supply. Some resources in Qian’an and Jiujiang were quoted at RMB 3,410/mt in the afternoon, up RMB 20/mt. Prices in Beijing, Wuhan, Guangzhou and Chengdu were not changed. Some cargo holders in Guangzhou have lowered prices by RMB 40/mt.
Prices have been falling after the Chinese New Year holiday, with decreases in some regions as much as RMB 300/mt. Spot prices were also lower than pre-holiday levels. The market will likely rebound, and confidence of some market players also improved, especially those with low inventories and sufficient cash flows plan to build stocks. Steelease believes demand is now improving, but market fundamentals were not balanced. Despite environmental protection policies are expected to support the market, regulations to the real estate sector will negatively affect the market. The market will likely improve in the short term, but any increases will be modest. Market players planning to build stocks can purchase modestly.