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Shanghai, China’s largest city, reopened for business on June 1 after a two-month COVID-19 freeze, with most construction sites resuming operations and steel warehouses reopening for cargo pickup.

However, demand for rebar in the city may take some time to fully recover, the sources added. Shanghai citizens can now leave their homes, return to work and use public transportation.

On June 1, almost all steel warehouses closed during the lockout reopened and allowed traders and end users to pick up or transport cargo to the warehouses.

According to Shanghai-based market sources, most construction sites in Shanghai continued to work without further disruption. “In the past two months, some construction sites in Shanghai have chosen a closed-loop management technique,” said a rebar trader.

Although the market has seen a positive signal on steel demand, some traders said they are concerned about the time it will take to return to pre-lockout levels, as well as the resolution of financial problems related to some projects.

There are some difficulties in getting payments from construction projects. Some projects are still underway, but there are funding problems. In the active Shanghai market in the morning session on June 1, rebar traded at 4,750 yuan/mt ($713/mt), up 40 yuan/mt from May 31.