Shanghai,
China’s largest city, reopened for business on June 1 after a two-month
COVID-19 lockdown, with most construction sites resuming operations, and steel
warehouses reopening for cargo pickup, market sources in Shanghai told S&P
Global Commodity Insights.
However, the
city rebar demand may take some time to fully recover, the sources added.
People in
Shanghai can now leave their homes, return to work, and use public
transportation.
On June 1,
nearly all of the steel warehouses which closed during the lockdown reopened
and allowed traders and end-users to pick up or transport cargo to the
warehouses, sources said.
According to
Shanghai-based market sources, most building sites in Shanghai have continued
to work without further interruption.
“In the last
two months, a few construction sites in Shanghai chose a closed-loop management
technique,” a rebar trader stated.
Although the
market has seen a positive signal on steel demand, some market participants
were concerned about the time needed to return to pre-lockdown levels, as well
as resolution of financial concerns related to some projects.
“There are
some challenges with obtaining payments from construction projects,” a rebar
trader in Shanghai stated. “Certain projects are still running, but there are
advance-fund issues,” the source noted.
In the
active Shanghai market on June 1 morning session, rebar traded at Yuan 4,750/mt
($713/mt), up Yuan 40/mt from May 31.