The higher demand for high grade iron ore have pushed the global prices of the material in China again back to USD 93/MnT. Though there were some concerns were expressed over the price hike due to the high inventory levels in the market. Eastern Chinese businesses has hold the deals back due to increased prices but it was not so in North part of the country.
Post Chinese New Year the demand for billets increased significantly in the country as construction business activities have gained momentum after a brief interval. On the weekend in Tangshan Spot billet lost RMB 40/t but rebounded at RMB 120/; spot rebar prices in Beijing also jumped RMB 135/t.
China’s spot rebar prices spike amid strong billet rebound
China’s spot rebar prices had another day of big gains on Monday February 20 amid a strong rebound in the billet market.
Billet demand was high due to which traders increased the offers reasonably.
Rebar businesses also changed the prices for higher gains.
Billet
Billet was being traded at 3,230 Yuan (USD 471/MT) including VAT in Tangshan, up 100 Yuan (USD 14.60/MT) after a decrease of 40 Yuan (USD 5.80/MT) over the weekend.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,546 Yuan (USD 517/MT) up 73 Yuan (USD 10.60/MT) from last Friday’s closing price.
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