Global iron ore prices were recorded as high as close to USD 95/MT, CFR China today as the futures and billet markets have seen an increase. Even though there was an upward movement in iron ore prices it was low on trading in the physical market comparing the day before.
Steel prices rose in turn increasing the profit margin as the Chinese steel prices continued to increase as spot billet prices in Tangshan gained another hike of RMB 80/MT today and spot rebar prices in Beijing also rose to RMB 115/MT.
Port stock prices gained RMB 10-15/wmt in Chinese Market. The most active DCE iron ore futures contract rose 3.83%, while SHFE rebar went up 1.65%.
Higher demand after a Chinese New Year holiday causes China’s billet price highest in four-years
China’s billet price rose to its highest in four years on Feb 21, 2017 in continuation from last week’s significant hikes.
Billet was traded at 3,330 Yuan (USD 485) per tonne including VAT in Tangshan, up 100 Yuan (USD 14.60) per tonne in the last 24 hours and the highest since February 2013.
This is 1,860 Yuan (USD 271/MT) higher than where it was on December 7, 2015, when the semi-finished product traded at a low of 1,460 Yuan (USD 213/MT).
China’s spot rebar prices surge amid strong billet gains.
China’s spot rebar prices continued to surge on Feb 21 on the back of big gains in the billet market, the highest since late 2013.
The price of billet rose to its highest in four years during the day while Shagang raised its list prices for long steel for late February. These gave a big boost to spot rebar prices.
The high price led to trading activity thinning however, with a marked drop in confidence observed among buyers in the construction sector.
Rebar futures continued to rise, albeit at a weaker pace than that over the last couple of working days, which sparked concerns among participants in the spot market.
Billet
Billet was traded at 3,330 Yuan (USD 485/MT) including VAT in Tangshan, following an increase of 20 Yuan (USD 2.90/MT) late on Mondayand another 80 Yuan (USD 11.60/MT) on Tuesday.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,575 Yuan (USD 521/MT), up 29 Yuan (USD 4.20/MT) from Monday’s closing price.
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