Global iron ore prices were stable however there was a surge in billet prices in China affecting futures markets along with a rise in spot rebar values.
The futures rebounded in Chinese market but the iron ore prices stayed afloat today however there was a significant price correction in futures market, however the trading in derivatives for the steel making raw materials have been defensive globally.
China’s spot rebar prices moved up in tandem with the surging futures and billet markets on Feb’17, with the rise making some sellers hold back amid expectations of bigger increases.
Billet prices up in Chinese Market
Billet was being traded at 3,170 Yuan (USD 462) per tonne including VAT in Tangshan, up 60 Yuan (USD 8.70) per tonne from Thursday.
A higher billet demand resulted in 3 and half years highest pricing for billets and the rebar sellers were mostly bullish.
On a note of positive speculations few sellers restricted the orders until future hoping an immediate surge.
Production restrictions by government in China that may limit the supply have sent a message that the higher demand against supply is likely to fuel the further hike.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,473 Yuan (USD 506) per tonne on Friday, up 92 Yuan (USD 13.40) per tonne from Thursday’s closing price.
Rebar prices in eastern China are up 200 Yuan (USD 29) per tonne this week while those in northern China are 230 Yuan (USD 33.50) per tonne higher.
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