China’s domestic rebar prices retreated on Tuesday June 1 following a proposal from local authorities in Tangshan to lower the rates of steel mills’ emission cuts to 20-30% from the current 30-50%.
Domestic
Eastern China (Shanghai): ۴,۹۰۰-۴,۹۲۰ yuan ($769-772) per tonne, down by 100-110 yuan per tonne
While the proposal has not yet been approved by Hebei’s provincial government, it led to sentiment deteriorating in the market because lighter restrictions on emissions effectively means steel producers would be able to raise their production rates.
Rain in parts of eastern China also put additional pressure on rebar prices.
Wet weather is forecast for large parts of southern China and some parts of the eastern region over the next three days. As such, rebar demand is set to weaken, which will weigh on prices, sources said.
Market chatter
“Economic stimulus in the United States, such as its $6-trillion budget for 2022, will cause inflation in the global market, which will in turn push up commodity prices, including those for rebar. Rebar prices will rebound to May’s high in the second half of this year,” an industry analyst said.
Fastmarkets’ assessment for steel reinforcing bar (rebar) domestic, ex-whs Eastern China reached historical high of 6,000-6,030 yuan per tonne on May 10.
Billet
As at 3pm, billet was being traded at 5,000 yuan per tonne including value-added tax in Tangshan, unchanged from a day earlier.
Shanghai Futures Exchange
The most-traded October rebar futures contract closed at 5,128 yuan per tonne on Tuesday, up by 101 yuan per tonne from a day earlier.
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