Rebar futures price on March 28 in China was 785 USD/ton, up 1% compared to the end of last week.

Futures price movement of rebar. Source: Trading Economics

The futures price of rebar in China on March 28 was 5,001 yuan/ton ($785/ton), up 1% compared to the end of last week. This item is down 2% since the rally on March 7.

The war in Ukraine affects the world steel supply because Russia and Ukraine account for about 10% of the global steel trade. Besides, fuel prices increase, so input costs of the industry will be pushed up.

According to experts, steel demand in China increased in March, partly due to the country's infrastructure investment policy. China tends to strengthen macro policies to stabilize the economy in the wake of the property market downturn last year. Industry experts believe that steel demand in China will increase in the second quarter as construction activities and investment in infrastructure will increase as China implements many economic stimulus measures.

However, the epidemic situation is increasing in China, raising concerns that consumption may be dragged down in the coming days. Shanghai and Jilin are the hardest hit areas in China's current Covid-19 outbreak, which started in early March. Transportation to ports has been difficult and investors , traders are generally more cautious in transactions.

NDH