SHANGHAI, Apr 17 (SMM) – Steel mills in Xuzhou, Jiangsu province are likely to resume operations on Thursday April 19 as the environmental inspection team is expected to leave the region on April 18, SMM learned.
Most steel mills were suspended for rectification earlier this month due to the provincial environmental checks. Daily rebar output of 20,000 mt is expected to be affected during the inspection period.
Spot rebar prices in north Jiangsu jumped last week, with top-tier materials offered up to 3,700-3,800 yuan/mt on supply shortage. However, trading slowed and spot prices fell on Monday April 16 following falls in prices of futures.
Nonetheless, market participants remained bullish and sellers were reluctant to offload their cargoes. We see more upward room for spot rebar prices in the short term as fundamentals remained positive while policies were supportive of higher prices.
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