Aug.21st Chinese market recap- One sharp rise can change the feeling and today happens. With some news of 1400 billion loan in housing section and short cover demand after series falling , Chinese market took a revenge rebound and HRC debar had repaired +120rmb/mt. Mills lifted base 5-6 rounds on daily basis and debar sales had been improved to 120000Mt above level. Further more the price gap between HRC to debar had expended to 80rmb around which is healthier. Export market is better with much improved bids and exporters are busy to lower position then mills’ allocation is running faster. Local billet index up 20+40rmb and steel export index up 10usd. Raw materials IO are firm also with short position cut and rose around 4.58% and closed at one week high level . Metal scrap supply had become normal to mills. Market can free fall hundred dollar in a while and soar like a rocket , every dog has its day !
