Plummeted futures caused the seaborne iron market to slow down on February 28.
According to reports the steel production is marginally higher in prominent China mills comparing the numbers with the last couple of weeks’ output this month, the stocks are at higher levels in one year’s period.
The major contributing sentiment for the downward trend can be the funds allocated by Chinese government for the railway infrastructure and roads are almost equal to the amount a year earlier spent and reflects no sustainability value for the current rally in steel market.
Billet
Billets were traded at 3,220 Yuan (USD 468/MT) including VAT in Tangshan, down 90 Yuan (USD 13/MT) compared with yesterday’s closing price.
Rebar
Falling futures affected rebar and billet prices negatively to close lower compared to yesterday. The purchases were lesser during the day with falling offers. Amidst the falling prices some traders still feel that when the supply shrinks due the production cut the rebar prices will possibly gain the momentum in near future. On the other hand some participants think that high level of inventory will bring prices down.
Trades
East China, domestic, grade III 16-25 mm rebar, traded at 3,630-3,660 Yuan (USD 528-532/MT) , including VAT.
North China, domestic, grade III 16-25 mm rebar, traded at 3,680-3,710 Yuan (USD 535-540/MT) , including VAT.
Dalian Commodity Exchange
The most-traded May iron ore futures contract closed at 690.50 Yuan (USD 100.50/MT) on 28th Feb, down 23.50 Yuan (USD 3.40/MT) compared with yesterday’s closing price.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,471 Yuan (USD 505/MT) on 28th Feb, down 141 Yuan (USD 20.50/MT) compared with yesterday’s closing price.
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