According to, Mr He Yonghua general manage of Shanghai Baoxia Metal Co Ltd, concerning the information he got from the sales meeting held by steelmakers, such construction steel market as rebar and wire rod markets will stay at a upturn level in the first half of 2009 despite some periodic fluctuation in the second half.
He analyzed three active factors for the good anticipation as follows:
1. Traders with cargos are encouraged by the nation's domestic demand promotion. The stimulus will consume lots of rebar and wire rods, which can help stabilize the market.
2. The jumping cost amid the stabilizing market will strongly sustain the construction steel market.
3. The export change of construction grade steel products can not affect the domestic market a lot just because 95% of the resources are consumed in the domestic market.
Therefore, the market is to be staying at a upturn level in the first half of 2009, compared with the relatively bad performance in the second half. As He said, the enlarging production will lead to over-supply, meanwhile, steelmakers in East China will put more resources into Shanghai market in H2. Further more, steel futures would be launched in H1 which may affect the cargo market.
It is believed that Generally speaking, the construction steel market is to perform pretty well in H1 of 2009.
