Steel rebar prices rise with strong Chinese demand

B report Mehr Reporter Steel rebar futures rose to more than 3,290 yuan per ton, continuing its recovery from the quarterly low of 3,129 yuan on January 8.

This increase is due to optimism about the growth of demand from manufacturers and large manufacturers this year.

China exported 9.7 million tons of steel in December, which was an increase of 26% over the previous year, ending a record-breaking year for steel exports.

This suggests that major Chinese mills continue to sell significant amounts of steel to foreign consumers, despite increasing global rhetoric about economic protectionism.

Meanwhile, increased demand was also supported by a jump in Chinese iron ore imports, indicating mills expect high turnover.

Other signs of improved demand included a sharp jump in the NBS construction PMI, which rose to 53.2 in December from a record low of 49.7 in November.

At the same time, investors continue to assess the impact of new economic support from Beijing, which includes looser monetary policy and increased deficit spending.

The chart below shows the monthly changes of steel rebar since 2010.