As of October 18, China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment had declined for six consecutive working days to near a 3-month low of Yuan 4,075/tonne ($565.2/t) including the 13% VAT after losing a further Yuan 25/t on day, while spot sales of construction steel saw a moderate recovery.
On Tuesday, the trading volume of construction steel including rebar, wire rod and bar-in-coil among 237 Chinese trading houses under Mysteel’s tracking gained 15,762 tonnes/day or 9.9% on day to 175,778 t/d, mainly due to some end-users’ procurement to meet their immediate production needs, though the overall market sentiment remained subdued.
Meanwhile, Chinese futures prices of major ferrous commodities also softened throughout yesterday, with the most-traded rebar January contract on Shanghai Futures Exchange closing the daytime trading session at Yuan 3,678/t on Tuesday, down by a small Yuan 16/t or 0.43% from the settlement price of Monday.
The decline in steel prices, coupled with the resurgence of COVID-19 cases in many regions across China, led most end-users to stand on the sidelines though steelmakers cut their offering prices by Yuan 20-60/t to facilitate sales yesterday, Mysteel Global noted.
In tandem, the Tangshan Q235 150mm square billet price in North China’s Hebei province under Mysteel’s assessment also eased by Yuan 30/t on day to Yuan 3,620/t EXW including the VAT as of Tuesday.
Written by Winnie Han, hanyueran@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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