China’s national average price of HRB 400 20mm dia rebar increased further on June 2 by Yuan 12/MT (USD 1.7/MT) on day to Yuan 3,840/MT including the 13% VAT. It hit a new high since January 3, although the trading volume slipped further, according to Mysteel’s data.
The rebar futures prices continued its uptrend on the same day with the most-traded rebar contract on the Shanghai Futures Exchange for October delivery increasing by Yuan 54/MT from the settlement price on June 1. It closed the daytime trading session on June 2 at Yuan 3,634/MT and the significant rise boosted market sentiments considerably.
However, the rise in price had slightly dampened sales. The trading volume of rebar, wire rod and bar-in-coil among 237 traders across China under Mysteel’s survey declined by another 7,396 MT/day or 2.7% on day to 264,725 MT/d on June 2.
“In the short run, the firm futures prices and iron ore prices have lent strong support to the rebar spot prices. However, the frequent rains in East and South China have limited the room for downstream steel demand to increase,” a Shanghai-based market watcher said.
Also on June 2, the Q235 150mm square billet price in Tangshan in North China’s Hebei remained unchanged from previous day at Yuan 3,310/MT EXW and including the 13% VAT, Mysteel’s data showed.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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