Chinese domestic rebar prices continued to rise on Monday October 11 after steel mills increased their list prices, but market participants remain pessimistic about demand and prices for the rest of October.
Import prices for cargoes of steel billet to China were unchanged on Friday October 8, but a growing sense of bullishness from the sell-side was reflected in offer prices, sources have told Fastmarkets.
Iron ore prices were mostly stable on Tuesday, October 5, and there was low liquidity in the physical and futures markets during the Chinese holiday. Estimates show that closing markets is the most important factor in lowering prices and reducing the likelihood of buying.
China is doing its best to ensure sufficient capacity to meet the needs of heavy industry. China is stepping up its efforts to ensure adequate electricity for heavy industry due to electricity constraints in various parts of the country. China's Development and Reform Commission has put measures on the agenda.
Reduce greenhouse gas emissions next winter. China's control of the pollution index looks set to tighten in the future.
Spot prices for hot-rolled coil in China gained some strength on Tuesday September 28, with futures rising for a second day amid a drop in production due to a power crunch in the country.
Spot prices for hot-rolled coil in China dropped on Friday September 24 after futures prices fell for a second day on growing demand concerns, sources told Fastmarkets.
Domestic hot-rolled coil prices in China were largely stable but in a wider range on Wednesday September 22, even as futures prices in the ferrous complex jumped on the first trading day after a three-day holiday for the Mid-Autumn Festival.
In an effort to prevent air pollution, China is reducing its steel sector, which produces between 10 and 20 percent of its carbon emissions. Mining companies are adapting to China's new production targets. "The growing sharp decline in steel production in China in the first half of this year, as confirmed by the industry leader in China in early August," the vice president of BHP, the UK and Australia, the Australian mining giant Anglo, wrote in a note in late August on the 2021 outlook. China's pressure on global steel supply indicates that shortages of many products will continue until demand and supply stabilize after the epidemic.
According to sources, while the price of marine iron ore concentrate has fallen. But the price of pellets has been rising in the week ending Friday, September 3, on the other hand, demand has fallen due to fears of further decline in steel production in most Chinese provinces.