Despite ongoing volatility in the context, the Chinese steel market has recently shown signs of growth in both the spot and futures markets.

According to updated information from My Steel Global, the Chinese steel market has recently shown signs of recovery. Prices for key steel products in China (such as plate steel, section steel, construction steel, pipe steel, etc.) have seen a slight rebound, particularly from August 19-23, mainly due to improved market sentiment and increased sales in the spot market.

Overall, prices for major products like plate steel, section steel, and pipe steel have seen a slight increase. Specifically, for rebar, as of August 23, the domestic price of HRB400E 20mm rebar was recorded at 3,248 CNY/ton (equivalent to 456 USD/ton, including 13% VAT), up by 42 CNY/ton from previous levels. On the same day, the most traded rebar contracts on the Shanghai Futures Exchange for October delivery closed at 3,154 CNY/ton, up 42 CNY/ton from the settlement price on August 16. In the international market, the price of Mysteel Shanghai rebar contracts on the Singapore exchange closed at 434 USD/ton on August 23 for the September contract.

The Chinese steel market has also seen an increase in sales of construction steel in the spot market, attributed to improved sentiment as some customers have returned to the market to replenish their construction steel inventory according to their needs.

Moreover, according to Mysteel's regular survey from August 19-23, the daily trading volume of rebar, wire rod, and hot-rolled coils among 237 trading companies averaged 121,985 tons per day, up by 27,098 tons per day (equivalent to 28.6% compared to the previous period). This increase is attributed to the fact that most steel producers in China continued to cut production due to ongoing margin losses, leading to a continued decrease in rebar production, although some producers in Hunan, Central China, continued operations. Factories are also reducing rebar production rather than adopting new production standards by the end of September.

Nhan Luat Corporation is a reputable supplier and importer of various types of steel with over 30 years of experience in the market. Customers looking to purchase different types of steel can contact us for detailed advice from our professional and experienced sales team, available 24/7 to support your needs.

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