Steel prices in China remained unchanged in the first week of September, after more than 2 months of growth. Despite the fact that economic indicators remained optimistic in August, the market was seized by a sudden cold. Steel rebar in Shanghai fell to its lowest level in a month. January delivery on the Shanghai Futures Exchange fell 0.6 percent to $ 606 a tonne, the lowest level since Aug. 7. Flat products have been holding back in price over the past few days.
However, it would be premature to talk about a trend reversal, as it was the key economic indicators (PMI) that gave another surprise in August. Nevertheless, the revival of production to almost 2.1 million tons of products per day continues to put pressure on the market with its supply, and prices will inevitably decrease. The stagnation of finished steel had an impact on iron ore prices, which fell $ 2 per tonne over the week to $ 137, their lowest in the past month.
Banks will have to reduce their hunger for money in the last 2 quarters. In addition, the abandonment of quantitative easing (QE) by the US central bank in the coming months will not increase the monetary base to stimulate the national economy, which will undoubtedly hold back prices for bulk goods. National holidays in the first week of October will also have an impact on changing the market situation in the volatile steel market.
