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Prices of steel products are finally showing signs of a rebound, after three months of continuous decline. Since the start of this week, steel futures on the Shanghai Futures Exchange have seen a rise for three consecutive days.
Yesterday, the price of steel reinforcing bars, or "rebars" opened at 4,190 yuan per ton, higher than its closing price the previous day. After climbing to almost 4,200 in mid trading, the quotation closed at 4,177 yuan per ton, rising by about 0.4 percent on the day before.
Guan Xiangfeng, Analyst of Shanghai Cifco Futures Co. Ltd. said "Two things contributed directly to the rebound. First, after the rainy season ended, construction sites have resumed work and made a lot of purchases. Second, reduced production volume at the manufacturers also helps steel rebar prices rise on the futures market."
Before this week, the price of steel rebar saw a drop of over 20 percent in three months. But analysts say this won't happen again.
Guan Xiangfeng said "I think the price is unlikely to see another big decline but a big jump is also unlikely in recent days. The price will be rising. Investors can wait for the best time."
Analysts believe the rebounding performance of the property sector on the stock market will also boost steel prices.