On September 9, China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment rebounded after just one day of retreat, up Yuan 50/tonne ($7.7/t) on day, and the spot sales of construction steel including rebar reversed from three days of declines, jumping 37.7% on day to a four-month high, partly as market sentiment improved on noting the continuing declines in finished steel stocks.
On Thursday, the rebar price was assessed at Yuan 5,462/t, and the Tangshan Q235 150mm square billet price in North China’s Hebei province, a barometer of the country’s spot steel market sentiment, also strengthened after one day of stability, up Yuan 50/t on day to 5,170/t EXW, both including the 13% VAT and according to Mysteel’s assessment.
As of September 9, rebar stocks at the commercial warehouses in China’s 132 cities showed that the volume declined for the sixth week, down faster at 3% on week to 11 million tonnes, and rebar stocks at China’s 184 steel mills fell too by 5.6% on week to about 3.2 million tonnes as of September 8, according to Mysteel’s weekly tracking, which had been supportive to the price.
On Thursday, spot trading volume of construction steel also comprising wire rod and bar-in-coil among China’s 237 traders under Mysteel’s tracking surged by 111,758 tonnes/day on day to 296,295 t/d, though the on-day jump was too steep to be sustainable.
In response to the positive development in the spot steel market, the most-traded January 2022 rebar contract on the Shanghai-futures Exchange recovered from a one-day loss too, jumping Yuan 243/t or 4.47% from the settlement price of Wednesday when closing the daytime trading on September 9 at Yuan 5,682/t.
Written by Villanelle Xia, xiayi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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