China: Analysis on the Reason of Long Steel Products Market Stronger than Plate Products
UMETAL-CHINA, Since Sep 2017, HRC price has been higher than that for rebar in most areas of China’s domestic steel market. However, after entering into Nov, the previous pattern of long steel products stronger than plate products seems to be changed. By Nov 22, the average price of domestic rebar was RMB4,320/tonne, up by RMB254/tonne compared with that in early Nov; While over the same period, the average HRC price was RMB4,218/tonne, rising by only RMB74/tonne against that in early Nov. Seeing from the difference of growing rates, domestic rebar price is remarkably stronger and already overtook the HRC price. Then what caused the large gap between long steel product and plate product prices? It is necessary for us to analysis from the perspective of supply and demand.