China’s domestic rebar prices retreated on Tuesday June 15 amid lower transaction volumes as a result of a mixed outlook for supply and demand.
Domestic
Eastern China (Shanghai): ۵,۰۵۰-۵,۰۸۰ yuan ($789-793) per tonne, down by 20 yuan per tonne
Some market participants expect an iron ore mine accident in Shanxi last week to lead to a nationwide inspection to ensure industrial safety, including for steelmaking. As such, they expect steel supply to decrease.
Many steel mills also typically take a few weeks during the summer to perform maintenance on their steelmaking equipment, which typically results in a drop in steel supply.
But other market participants do not think any drop in steel supply will support steel prices because June-July is a low season for rebar consumption.
High temperatures and heavy rainfall make it hard to carry out construction works, a trader in Shanghai said.
Market chatters
“The National Development & Reform Commission and the Ministry of Industry & Information Technology are keeping a close eye on price changes for commodities such as rebar, so rebar prices are unlikely to experience large fluctuations,” an industry analyst said.
Billet
As at 3pm, billet was being traded at 5,060 yuan per tonne including value-added tax in Tangshan, up by 50 yuan per tonne from last Friday.
Shanghai Futures Exchange
The most-traded October rebar futures contract closed at 5,168 yuan per tonne on Tuesday, down by 154 yuan per tonne from last Friday.
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