Analysis: China longs market booming as Beijing outlines 2017 priorities

摘要

Another round of steel productionrestrictions in China’s Hebei province,along with closures of induction furnacesin Jiangsu province, are supporting thepositive outlook for long steel productorders and prices, while end-user demandin the construction sector has improveddue to the warmer weather. Despiterobust manufacturing data in February,domestic demand for hot rolled coilremains subdued, which is putting pressureon China’s ability to export the material.March is generally a strong month for steeldemand in China so positive momentum,for longs at least, should continue andsupport prevailing price levels over the next1-2 months.