On November 2, China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment declined for the second day to a new low since July 12, or having slumped Yuan 116/tonne ($18/t) amid overall plunges in ferrous commodities prices both in physical and futures markets, and spot sales of construction steel including rebar shrank for the second day by another 5.1% on day.
On Tuesday, the rebar price dived to Yuan 5,188/t including the 13% VAT, and spot trading volume of construction steel also comprising wire rod and bar-in-coil among China’s 237 traders under Mysteel’s tracking trimmed 8,318 tonnes/day on day to 156,174 t/d, a normal level for November, a winter month.
As of November 2, the Q235 150mm square billet price in North China’s Tangshan, though, persisted at Yuan 4,900/t EXW including the VAT since October 27, according to Mysteel’s tracking, despite that the demand has been tepid with the ongoing production suspension on the local re-rollers, sources said.
The price spread between billet and rebar as of Tuesday suggested possible lossmaking for some long steel producers, Mysteel Global noted.
On November 2, the most-traded January 2022 rebar contract on the Shanghai Futures Exchange slumped for the second trade day, down Yuan 368/t or 8% from the settlement price of November 1, closing the daytime trading session at Yuan 4,230/t.
China’s domestic steel prices was unable to source much comfort from steelmaking raw materials either on Tuesday, as Mysteel SEADEX 62% Australian Fines fell below $100/dmt for the first time after September 21, or sliding for the fifth working day by $5.7/dmt on day to $96.8/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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