On September 27, China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment gained Yuan 22/tonne ($3.4/t) on the day after one-day stability, and spot sales of construction steel increased by 14.1% on day partly due to some replenishment needs among the end-users and traders ahead of the long National Day holiday over October 1-7.
On Monday, the rebar price rose to Yuan 5,773/t and including the 13% VAT, and the spot trading of construction steel also comprising wire rod and bar-in-coil among China’s 237 traders under Mysteel’s tracking grew by 32,516 tonnes/day on day to 262,675 t/d, which had been a new high since September 10.
The Q235 150mm square billet price in North China’s Tangshan, a barometer of the Chinese steel market sentiment, in contrast, remained unchanged on the day at Yuan 5,190/t EXW including the VAT as of September 27, partly as the local demand had been subdued with the local re-rollers on suspension since the start of September 27 due to local power rationing.
Spot finished steel price increases lent support to the steel futures, and the most-traded January 2022 rebar contract on the Shanghai Futures Exchange rebounded by Yuan 53/t or 1% from the settlement price of September 24 when closing the daytime trading session of September 27 at Yuan 5,564/t.
Recent strengthening in China’s finished steel prices and pre-holiday raw material restocking saw Mysteel SEADEX 62% Australian Fines up too on September 27, gaining $9/dmt on the day to $118/dmt CFR Qingdao.
Written by Rong Zhang, zhangronga@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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