Issue 37, 2024 - This week's editorial: Market questions China rebound, Europe aims to revive competitiveness

The Chinese market enigma continues. Prices in the world’s largest producer and consumer rebounded across the board last week, but market participants strongly doubt this trend’s sustainability. Meanwhile, Italian rebar producers attempted price hikes for the umpteenth time in recent months despite sluggish demand, while Tata Steel UK finally closed the £500 million ($653m) government funding deal for its electric arc furnace transformation.

Demand in China's spot steel market surged ahead of the Mid-Autumn Festival, driven by restocking orders as buyers prepared for the holiday closure. The steel futures market saw an even sharper rebound, spurred by speculation that China may soon cut interest rates, to stimulate consumption, with a particular focus on supporting real estate. The anticipated economic stimulus measures are set to keep China on track to meet its 5% growth target for the year.

Chinese hot rolled coil export prices also recovered but not to the same extent as the domestic market. A pick-up in transactions was nevertheless reported.

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