Chinese steel prices have spiked again this week, with hot-rolled coil prices setting domestic records
and rebar prices
leaping closer to 2008’s all-time highest level.
At the heart of the latest rise in rebar prices have been expectations that crude steel output will be squeezed
in the second half of 2021 to satisfy government rules on maximum steel production levels, together with restrictions to new steel capacity in the country.
With demand for rebar
from the construction sector in China also solid, prices for steel billet, which is a ready-made replacement for producing long steel from a furnace, have prospered in the country over recent months. The sharp movements since China’s return from its Labor Day holidays on Thursday have been no exception.
Fastmarkets' price assessment for steel billet domestic, exw Tangshan, Northern China was 5,190 yuan ($802) per tonne on Friday May 7, up 70 yuan per...