Aug.20th Chinese market recap- A long awaited rebound happened and now market will come back to the fluctuation period again. Steel futures are pushed up roughly 2% when closed and mills’ more control capacity might help to support present rate and sharp falling last week had made the falling room less. HRC performance is still weaker than debar so some regions debar can gain 30-40rmb in sales while HRC is slower. some mills closed offer much earlier than normal today. Export market is messy this week and less offers shows at comparatively low level and most disappeared in late afternoon. Leading mills had got some better order after base cut and October shipment is 20-40% occupied in volume. Local billet index +20rmb and steel export index up 6usd. Raw materials IO is in the negative trend still and mills’ less demand will become the price focus in coming days and capacity cut is on the way for example Benxi just closed a 2580M3 BF and some other mills will follow soon. No surprising rebounds but it is too early to define as turning point and with high output VS slow demand , Chinese steel had a longer way to repair present situation.
