Steel Prices to be High with Demand and Cost Support

SHANGHAI, Mar 3 (SMM) - Rebar futures prices added 0.64% yesterday. Rebar output and demand continued to grow this week. The construction steel inventory fell further due to the early release of demand, but the growth rate of demand dropped in the week. The contradiction between supply and demand growth in the later period may intensify. The market players held diverged views. Intraday futures prices fell after soaring, and the long-short game became vehement.

Commercial housing and second-hand housing have improved significantly, and the construction of infrastructure projects is pleasing. Recent data show that the Chinese economy is recovering at an accelerated pace. And bullish policies which surpass market expectations may not be introduced by the Two Sessions that will be held on the weekend. China will still focus on economic stability. The current steel prices may continue to fluctuate at a relatively high level under the expected demand peak and cost support.