Chinese steel market ended the week with a surprising rebound. Even though it is difficult to gauge the reason for this weekend blip it certainly gave hope to resigned sentiment.
Some optimism dawned amidst speculative mist about the quantum of steel demand likely to unfold. Steel majors like BaoSteel and Wuhan opted for rollover in October hopeful of better market condition as the demand unfolds. Most of these projects are long term but it has bolstered the confidence of the steel majors resist any correction.
Drop in daily crude steel production in August 4.84% lower than July at 58.7 million is a positive signal about the mills pulling their socks. On the global front emerging signals of QE3 by US Federal Bank and approval of the EU bond buying by German Supreme court has ticked stock markets up by 1-2 %.
Coming week will crucial in setting the coordinates market direction.
CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index
Source - Strategic Research Institute