Is the rise of rebar prices in China unstoppable? It certainly looked like it in May, when the previous-month correction reversed and prices reached new highs of almost US$550/tonne. Two arguments go in favour of supporting a bullish view: capacity closures and the strong performance of construction activity. The government has kept an unwavering focus on capacity closures and has publicised its determination with frequent updates on progress, which is faster than expected. Total building completions were up 10% year-on-year in the first four months of 2017 and sales for construction-related machinery equipment were twice as high in April 2017 than in April 2016.