Steel prices in China are three- months low on less demand
Steel

Steel prices in China are three- months low on less demand

China is the world's largest user of steel, but sluggish demand from the country's construction industry caused steel prices to drop to a level below those of the previous three months. Rebar on the Shanghai Futures Exchange (SHFE) dropped to 3,471 yuan per metric tonne, the lowest price since April 8, by as much as 1.1%. At 3,478 yuan, the contract finished 0.9% down. According to recent statistics from China, the country's domestic demand is still recovering slowly, and data on building projects shows a double-digit percentage decline in the first five months of the year. The price of SHFE hot-rolled coil steel fell to 3,680 yuan per tonne, a level not seen since April 8. It closed at 3,681 yuan, down 0.7%. Steel shed 0.8% of SHFE wire rod. By 0700 GMT, the benchmark August iron ore contract on the Singapore Exchange had lost 3.4% to $107.70 a tonne, while the most traded September iron ore on China's Dalian Commodity Exchange (DCE) had fallen 1.8% to 813 yuan a tonne. Coke decreased 1.1% to 2,215 yuan, and DCE coking coal fell 2% to 1,531 yuan per tonne. Still, the price drop appears to be restricted. "The demand hasn't fully vanished, despite its weakness. Thus, any price decline won't be unduly significant, especially because much of the pessimism has already been priced, a trader stated.According to the trader, the supporting levels for the contracts for hot-rolled coil and SHFE rebar are 3,600 and 3,360 yuan, respectively. Market participants have been eyeing China's key political meeting next week as they hope for supportive policies to boost demand for steel. "There might be some talks of boosting the economy, etc., but I think what the market is looking for are details," said the trader.

China is the world's largest user of steel, but sluggish demand from the country's construction industry caused steel prices to drop to a level below those of the previous three months. Rebar on the Shanghai Futures Exchange (SHFE) dropped to 3,471 yuan per metric tonne, the lowest price since April 8, by as much as 1.1%. At 3,478 yuan, the contract finished 0.9% down. According to recent statistics from China, the country's domestic demand is still recovering slowly, and data on building projects shows a double-digit percentage decline in the first five months of the year. The price of SHFE hot-rolled coil steel fell to 3,680 yuan per tonne, a level not seen since April 8. It closed at 3,681 yuan, down 0.7%. Steel shed 0.8% of SHFE wire rod. By 0700 GMT, the benchmark August iron ore contract on the Singapore Exchange had lost 3.4% to $107.70 a tonne, while the most traded September iron ore on China's Dalian Commodity Exchange (DCE) had fallen 1.8% to 813 yuan a tonne. Coke decreased 1.1% to 2,215 yuan, and DCE coking coal fell 2% to 1,531 yuan per tonne. Still, the price drop appears to be restricted. The demand hasn't fully vanished, despite its weakness. Thus, any price decline won't be unduly significant, especially because much of the pessimism has already been priced, a trader stated.According to the trader, the supporting levels for the contracts for hot-rolled coil and SHFE rebar are 3,600 and 3,360 yuan, respectively. Market participants have been eyeing China's key political meeting next week as they hope for supportive policies to boost demand for steel. There might be some talks of boosting the economy, etc., but I think what the market is looking for are details, said the trader.

Next Story
Real Estate

Pune Records 11% Drop in Property Registrations in Nov

Property registrations in Pune saw a decline of 11 percent year-on-year in November, totaling 13,371 units, despite robust demand, according to a report by Knight Frank India. The real estate consultancy revealed that the total registrations in November 2024 generated a revenue of Rs 475 crore for the state. This marked a fall from last year's figure of 14,988 units in the same month. Compared to October 2024, when 20,894 units were registered, November’s figures represent a 36 percent decrease. Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated that Pune’s proper..

Next Story
Infrastructure Energy

Oriana Power Signs MoU with Rajasthan in Clean Energy

Oriana Power, a publicly-listed company on the NSE, announced on Monday that it has entered into a Memorandum of Understanding (MoU) with the Rajasthan government to invest Rs 10,000 crore in a series of clean energy projects. The projects will focus on solar energy, floating solar, green hydrogen, and energy storage solutions. The agreement was finalized in Jaipur during the recently concluded Rising Rajasthan Global Summit 2024. Oriana Power has identified six key locations in the state for these projects, including one in Bikaner, two in Churu, and three in Phalodi districts. Rupal Gupta, M..

Next Story
Infrastructure Energy

PM Surya Ghar Scheme Set to Surpass 10 Years of Solar Growth

The PM Surya Ghar Muft Bijli Yojana has achieved a remarkable milestone, surpassing 6.85 lakh solar installations within a year and poised to exceed a decade's worth of solar growth. The scheme, launched in February 2024, has already achieved 86 percent of the solar installations made in the last ten years. The 3-5 kW segment accounted for the majority of installations, at 77 percent, while 14 percent of installations were in the 5kW+ category. Gujarat led the charge with 2,86,545 installations, followed by Maharashtra with 1,26,344, Uttar Pradesh with 53,423, and Kerala. The scheme, which now..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000