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In China, construction steel prices got strongly underpinned by steadily decreasing inventories.
"Newly increased market supply is limited. The annual shift of products from North China to South China in December is also smaller," a construction steel trader based in Shanghai told us, "The shipment, usually 20,000-30, 000 tonnes a batch in the previous years, decreased notably this year. Arrivals of products from New Fushun Steel and Xilin Steel (from North China to South China) are only about 4,000 -5,000 tonnes this year."
The visible shortfall is particularly significant in Hangzhou City , Zhejiang province, an important market area in East China , where 10mm , 12mm , 14mm , 16mm rebar all meet deficits.
In Guangzhou , inventories are low even though the construction works are affected by the Asian Games. "Product arrivals get affected by transportation too. And products that annually come down to South China from North part also decrease this year."
In Beijing , most market resources concentrate in the hands of few big traders while most counterparts' stockpiles have been under normal level.
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