Via AG Metal Miner
For the past year or two, steel analysts and experts have talked about how China's market is now more open. Simultaneously, they discussed how domestic steel demand had surged due to increased infrastructure spending. The way they made it sound, low steel prices would soon become a thing of the past.
This week, prices for Chinese steel rebar fell to their lowest level in three years. Last Thursday, the spot price for HRB400 20mm steel rebar, essential for reinforcing concrete, dropped to roughly U.S. $507.80 (3,510 yuan) per ton. It appears that this year's much-promised comeback won't happen anytime soon.
Steel prices have decreased globally due to weaker Chinese demand, which has, in turn, affected nations like India. Analysts tend to gauge the health of the global steel sector on Chinese steel pricing.
According to certain Indian analysts, Chinese steel mills are currently dumping steel into Indian markets due to a shortage of customers in China. Only in March of this year did a confident Koushik Chatterjee, CFO of Tata Steel, speak of stabilizing the European steel market and the potential end of low steel prices due to China's opening up and a more balanced market.
By Sohrab Darabshaw
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