Steel market in China rode the crest throughout December however the tide seemed to be ebbing during the week with winter lull setting in.
Encouraged by the incentive of National Development & Reform Commission's approval for a slew of construction projects on Dec 24, futures market boosted sharply yesterday with the futures index popping up 2.41% to 2453 point.
Echoing the good news, rebar futures picked up 2.38% to CNY 3780 per tonne, however the spot market remained soft.
It can be attributed to positive macro economic parameters monetary easing and bullish fundamentals. However spot market is quite gloomy recently, affected by tight capital supply, cold weather and freezing demand.
Despite shade of pessimism the stock build up before the Lunar Holiday in February 1st week is likely to enliven the market after the New Year recess.
Source:
http://www.steelguru.com/chinese_news/Chinese_steel_market_remains_steady_on_future/296525.html
