China’s average price for HRB400 20mm dia rebar, a bellwether of the domestic steel market’s sentiment, grew for the third working day to reach Yuan 3,631/tonne ($515/t) including the 13% VAT as of April 13, increasing another Yuan 19/t from last Friday. Long steel sales hit a 6.5-month high after rebounding on Monday.
The continuous rise in China’s rebar price was mainly thanks to the optimism in the futures market which boosted the sentiment in the spot market. On Monday, the most-traded rebar contract on the Shanghai Futures Exchange for deliveries in October closed the daytime session at Yuan 3,387/t, climbing up by Yuan 57/t from the settlement price on last Friday.
Steel transaction in the domestic spot market saw a substantial improvement, indicating that demand from downstream users remained firm during the traditional peak season for steel consumption.
Trading volume of construction steel comprising rebar, wire rod and bar-in-coil hit a record high of 288,953 tonnes/day on Monday, second to the record of 303,060 tonnes on September 23 2019. Mysteel’s daily survey among the 237 sampled trading houses across China showed that it increased by 41,062 t/d or 16.6% from last Friday.
The Tangshan Q235 150mm square billet price continued to rise on Monday, gaining another Yuan 10/t on day to Yuan 3,060/t EXW and including the 13% VAT, Mysteel’s data showed.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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