Chinese steel prices rise in early July

China’s Steel index rose 1% in the first week of July, ending a continuous drop for many weeks. Sentiment on the spot market has been boosted by rebounds in futures contracts and raw materials prices.

A number of steelmakers in China have been cutting production, leading to tight supply in several steel categories. The benchmark reinforcing steel bar futures contract on the Shanghai Futures Exchange has risen for seven consecutive trading days, and prices of iron ore and steel billets are also rebounding marginally.

Source: China Metals e-mail chinametal@xinhua.org