China Rebar Price Surges 30 per cent in 1H, and Where Will Steel Market Head for? SMM Reports

SHANGHAI, Aug. 15 (SMM) – China’s steel futures and spot prices, and share prices of steel companies in secondary market have registered sharp gains since the beginning of the year, thanks to combined factors of de-capacity, environmental factor, and inflows of cash liquidity.

Recently, a series of measures have cooled down the market. Rebar prices fell by 6 per cent in 4 trading days following CISA’s article which blamed market speculations to irrational gains recently and SHFE’s action to raise commission fees position closing of rebar futures contracts. On a weekly average price, rebar and share prices of steel companies are still cheerful.

On Tuesday’s morning business, rebar price showed signs of stopping falling, so share price did, which followed Xining Special Steel.   

Rebar price surged by about 30 per cent during the first half of 2017, and the table shows a summary of share prices of major steel companies.

According to the data, many steel companies witnessed a more than 30 per cent gain of share prices despite a recent decline.

SMM predicts that rebar price will keep corrections in the short term, but will remain bullish in the medium and long run due to no changes in market fundamentals.

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