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BEIJING/SINGAPORE, May 14 (Reuters) - Chinese builders have slowed purchases of steel-based materials after prices soared to record highs, but the top steel-consuming construction sector is expected to remain well supported until the rainy season slows activity from June, trade sources said.
The most-traded contracts for construction-grade steel rebar and wire rod on the Shanghai Futures Exchange have surged close to 40% this year, and over 20% since April 1, amid a stimulus-driven building boom that has helped lift the Chinese economy since late 2020.
But some construction companies are now restraining metal purchases over concerns that prices may be over-stretched.
A Guangdong-based construction firm, which normally replenishes steel product stocks every week, said the company was now buying only 5% of its usual volumes after prices soared.