China Domestic Steel Price Update - 17 Jan'19

Steel price in various regions slowed down and stabilized following futures rebound.

In the early trading hours, the mainstream quotation of the construction steel in Shanghai market is in stable operation and price is without neither uptrend nor downtrend momentum amid dominant wait-and-see sentiments.

During the night trading period, the rebar futures moved higher, and the market sentiments stabilized. As the market opened in the morning, the local mainstream resources is stable, with rebar of large factories standing at RMB 3,730-3,770/MT. Since the Spring Festival is drawing close, the market demand is shrinking and feedback shows that construction sites have already progressively stopped and enters in holiday mode. Meanwhile, the trader's mentality is relatively stable, and the short-term price is unlikely to fluctuate greatly.

As the demand subsides, the transaction is sluggish with limited fluctuation in spots, it is expected that local construction steel will be in process of transverse consolidation.

Billet market in Tangshan - Yesterday, price of general carbon steel billet in Tangshan was stable; today the same was temporarily stable at RMB 3,380/MT while rectangular billet at RMB 3,400/MT,both ex-factory cash including tax.