Posted on 07 Aug 2012
Early this week, rebar futures prices rebound marginally, which stabilizes rebar prices in the spot market. Steel supplies in the trading market maintained surplus situation and the prices have no chance to firm up fundamentally.
Here below some noticeable news may affect steel markets in the near future.
I People’s Bank of China reaffirmed the priority of stable growth and proposed to continue the prudent monetary policy. In the second half of 2012, the Central Bank will strengthen the monetary policy fine-tuning and complete credie policy.
Meanwhile, the Central Bank will enhance supports to development of substantial economy, which will boost demands for steel products.
II Growth in fiscal revenue is higher than that in GDP, which provides more space in structural tax cuts.
III Stable growth policy was successively unveiled in Ningbo, Nanjing and Changsha since this mid-July, and this will facilitate more projects approvals, which will directly push demands for steel.
Consequently, all policies above may accelerate rebounce of steel market in the short run.
