SHANGHAI, Mar. 18 (SMM) – Steel futures prices increased noticeably last Friday with the NPC and CPPCC coming to an end. Although domestic stock markets closed lower, futures rebar prices rose 86 points, and property shares performed well, resulting in speculation on positive property policies.
Steelease had expected policies to be clear following the two sessions, lifting market confidence, which was confirmed by the market condition on Friday, but specific rules will unlikely to be released until late March. The prices increase in Congle outstripped that in east China, since the low-priced goods in Rizhao left costs lower in east China, while traders in south China reported higher costs. Meanwhile, the previous price decline was believed to be the result of depressed market sentiment, so prices in south China staged larger rebound than east China.
Shougang announced its hot-rolled prices for April last Friday, with the decline narrowing from the RMB 400/mt reported earlier, and the rebates for March were also removed. This was due mainly to the general rallies in steel prices. The prices to be announced by Ansteel are also expected to be influenced by the price rebounds, with the preferential margins below expectations. Steel mills may introduce settlement prices later to control the risk brought by price fluctuations.