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China's construction steel market is bottoming out and rebounding since the mid-November. SteelHome data monitor shows that, the mainstay prices of HPB235 high-speed wire rod and 20mm HRB335 rebar at 28 major domestic markets are CNY4585 per tonne and CNY4412 per tonne, respectively up CNY63 per tonne and CNY68 per tonne. Delivery time slowdown; social inventory decreases.

China's construction steel market is featured as quickly-decreasing inventory after the price dive. According to SteelHome data monitor, by November 11, wire rod and rebar inventory at the 28 key domestic markets are 1.1379 million tonnes and 6.2154 million tonnes, respectively down 223,000 tonnes and 617,600 tonnes when compared with those in October 8.

A number of overhauls appear as steel prices going down in October. Hence the pressure on required resource lessened. National Bureau of Statistics (NBS) posts, China produces 54.673 million tonnes of crude steel in October, a yearly increase of 9.7 percent; average daily production stays at 1.7665 million tonnes, down 6.5 percent from September.

This is a trend that continues when entering November. In line with the latest statistics of China Iron & Steel Association (CISA), the average daily crude steel production of CISA members is 1.4801 million tonnes in the early November, descending 10,900 tonnes from the late October and recording as a new low this year. It is presumed that average daily crude steel production of the country as a whole is 1.6641 million tonnes, a decrease of 52,900 tonnes from October end.

A trader in Beijing said, recently steel mills see fewer arrivals, and inventories go down when the market turn better. Certain grades, such as ¦µ16-22mm rebar sees an obvious shortfall. On November 11, wire rod and rebar's inventories at Beijing market is 89,000 tonnes and 362,000 tonnes, down 45,000 tonnes and 39,000 tonnes from October 8. raymond mill:http://www.hxjq-crusher.com/11.html
Dryer machine:http://www.hx-china.com/15.html

Price moderately rebounds; market maintains cautious. Under the jointly influence of financial market showing an upturn, less resources and more transactions, China's construction steel market rebounds mildly since the mid-November, which adds more optimistic elements to the sentiment. But the haunted pessimism has not yet been cleared off as some uncertainties exist still for the future market.

For now end users' demand turns normal and daily transaction volume regains above 1,500 tonnes, quoted as a Beijing construction steel trader's saying. But the latter demand in north china is doom to squeeze as chilly winter approaching. The top concern at present is about the up-going supply pressure, as an increasing number of mills restart their productions along with price rebound because of the use of dryer machine.

A Guangzhou construction steel trader holds, China's recent macro-control policy alters little, hence the situation of tight capital may lessens with Hongxing sand maker. But the country's regulation and control on real estate industry stay resolute, so the later investment on real estate may see an obvious decline, which is of course a crash onto construction steel market demand. In the medium term, construction steel may see no upturn; in the short term, it is predicted that market prices will post a small-ranged volatility around the recent price for traders are reluctant to sell at a low price.