Southern China’s market to see greater steel shipments from north in Nov
Steelmakers in north China are expected to ramp up shipments of steel products to southern China’s markets in November, as lower temperature dampened steel consumption in the north and widened the price spread between north and south.
The eastern market, however, will unlikely to see a surge of inflow as bearish price outlook on greater supply accelerated decline in local steel prices. SMM assessments showed that prices of construction steel rebar in Shanghai have slipped 150 yuan/mt from October 8, to stand at 3,620-3,640 yuan/mt as of October 30.
Compared with 2018, the north-to-south steel delivery this year was on a smaller scale as frequent occurrence of environmental controls and stricter implementation cut production in the north.
SMM sees the arrivals of cheap cargoes from the north unlikely to create significant impact on spot prices in the south, as high consumption season in south China may extend till December and local steel mills even reported tight supply of some specifications.