For the past year or two, steel analysts and experts have talked about
how China’s market is now more open. Simultaneously, they discussed how
domestic steel demand had surged due to increased infrastructure spending. The
way they made it sound, low steel prices would soon become a thing of the past.
This week, prices for Chinese steel rebar fell
to their lowest level in three years. Last Thursday, the spot price for HRB400
20mm steel rebar, essential for reinforcing concrete, dropped to roughly U.S.
$507.80 (3,510 yuan) per ton. It appears that this year’s much-promised
comeback won’t happen anytime soon.