In 2017, more than half of the Chinese steel market was the best in Asia's major commodities, and demand was surprisingly strong as China moved to reduce supplies by cutting down steel production.

    But oil markets have been showing bottom, even though many of the world's oil producers have promised to cut prices to support prices.

    Since the beginning of the year, the price of rebar for construction in China has risen by nearly 1/3, reaching more than RMB 3800 yuan (US $562.42) per ton.

    Asian crude oil index, the Dubai Mercantile Exchange (Dubai Mercantile Exchange) Oman crude oil futures prices fell more than 12% this year, down to $47.50 a barrel.

    The energy market is dull and says market attention is firmly locked in the steel sector. That includes the price of iron ore. This is used for the production of iron and steel raw material prices have rebounded from a decline in June, since the beginning of July rose more than 17%, to $65.74 a tonne.

    "China's steel output is at record levels. Despite the expected China demand will be cool, but the growth of the country is still higher than expected demand, "HSBC Global Research Director Frederic Neumann said.

    "The main driving force from the housing market and infrastructure construction, thanks in part to The Belt and Road investment to the West and China border provinces," he said.

    Will the steel boom continue?

    The boom in China's construction and infrastructure industry, which supports the steel industry, also boosted copper prices, up 25% from an annual low in May 2017, approaching $5990 a tonne.

    Similarly, with China thermal power generation growth this year since 7%, the coal price index also rose in Asia, to promote Australia Newcastle coal export cargo prices since May rose 25% to nearly $90 a tonne, reversing earlier decline this year.

    However, with the tightening of crude oil supply and the cooling of Chinese steel demand, the future market situation of the oil and steel industry may be interchanged. China's construction activity and demand for rebar are likely to cool by the end of the year, partly as a result of tighter regulation.

    At the same time, most oil market analysts expect the crude oil supply to be tight by the end of the year as the oil exporting countries (OPEC) and other oil producing countries such as Russia begin to reduce global inventories.