Steel market in China predicts growth in demand in September

Domestic steel demand in China will improve this month as mills maintain high production levels and traders actively fill their warehouses, according to Chinese steel market participants polled by Mysteel Global on September 3.

September-October in China is always a busy season for steel consumption, as the good weather after the rainy season, frequent typhoons and high summer temperatures is very suitable for manufacturing and outdoor construction.

In particular, steel consumption is expected to rise this month as Beijing has taken a number of measures to revive the economy after COVID-19, including the launch of new infrastructure projects, the renovation of old residential areas and the provision of incentive incentives for cars. and the production of household appliances will continue to operate and accelerate in the second half of this year.

Chinese steel traders also looked forward to a rebound in September demand after a warm August, but compared with the confidence of steel companies, their optimism has a tinge of caution.

"It is still hot in Guangdong right now, and our sales are not yet showing anything like a boom," admitted a steel trader from South China's Guangdong province. He told Mysteel Global that his company has purchased an additional 200,000 tonnes of long products in addition to its usual stock of about 300,000 tonnes in preparation for the upcoming surge in demand.

According to a Mysteel study, China's construction steel trade, which includes rebar, wire rod and wire rod, was around 210,000 tonnes per day during the September 1-2 period, just above 200,000 tonnes per day, a threshold below which the traders, doing business is going badly. through 237 Chinese steel traders. Domestic steel demand in China will improve this month as mills maintain high production levels and traders actively fill their warehouses, according to Chinese steel market participants surveyed by Mysteel Global on September 3.

September-October in China is always a busy season for steel consumption, as the good weather after the rainy season, frequent typhoons and high summer temperatures is very suitable for manufacturing and outdoor construction.

In particular, steel consumption is expected to rise this month as Beijing has taken a number of measures to revive the economy after COVID-19, including the launch of new infrastructure projects, the renovation of old residential areas and the provision of incentive incentives for cars. and the production of household appliances will continue to operate and accelerate in the second half of this year.



“(I'm) very confident in myself,” said an official at a steelmaker in Shandong province in eastern China.

Although he admitted that consumption by end consumers has only become