Steel prices witness a mini-rally mid-December and then reverse

摘要

Owing mostly to closures and maintenance shutdowns at steel mills over the recent past, whichresulted in the steel production dropping 5% m/m in December, Chinese steel prices witnessed amini-rally during the month. However, given that there has been no tangible improvement in steeldemand in the country, the price rally was not sustainable and prices fell back again after the firstweek of January. Underlining the weak demand, BF operating rates in the Tangshan retreated stillfurther following the price fall.