“The elimination of some induction furnaces has indeed led to a shortage of rebar in China,” said Xu Huimin, an analyst at Huatai Futures Co. in Shanghai.
There are signs of a potential shortage of nationwide rebar stocks, although analysts say this trend could reverse as other manufacturers increase supply. Rebar stocks in China have been declining every week since mid-February and are currently at their lowest level since December.
Changes in China's coking coal policy have also created a divergence between iron ore and steel. When coal increases in price, as happened last year, factories can respond by using higher grade iron ore to improve efficiency.
The largest steelmaker is experiencing a shortage of reinforcing steel
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