According to the data released by MOFCOM recently, Chinese domestic steel price rose by 0.3% last week as compared to prior week. Looking at the price trend concretely, the price for rebar with diameter of 12 mm and high-speed wire rod with diameter of 6.5 mm had inched up by 1.1% respectively last week as compared to prior week. This is the first price rebound after the twelve-week long price drops. And there are three main reasons for the current price rebound:
Firstly, lots of steel mills have already cut their production recently which are beneficial to the price to go up. Secondly, the decreasing inventories for the construction steel materials also have contributed to the price rally. Thirdly, the price for raw materials also has ramped up gradually. In detail the domestic iron ore price rose by 0.87% last week vs prior week, up 4.3% compared to early November.