According to Platts estimates, apparent consumption of steel in China for January-October increased by 8.1% yoy to 770 million tonnes, which is 0.7 percentage points higher growth in crude steel production over the same period.
Chinese traders report a high demand from end consumers on the structural steel remained until November and will probably last until December. Activity in construction picked up in the last month or so, as Chinese new year holidays begin early next year on January 24. This time of the Lunar new year, when migrant workers, who mostly make up the workforce in the construction industry of China, return to their home town, stopping work at construction sites for 2-3 weeks.
According to the National Bureau of statistics of China, released on Thursday, in October area of retail space increased by 23% yoy in January-October it amounted to 1.85 billion square meters.
For the construction of real estate accounts for about a third of the steel consumption in China, and the number of production areas is an important indicator of demand for rebar and other construction steel.
due to the boom in construction and reducing the cost of iron ore, the average margin of sales of rebar and hot-rolled steel in China increased to 64.03 and 19,89 USD per tonne in November, compared with 43,08 and 5.96 USD in October, according to Platts.
