China rebar prices increased sharply on Tuesday April 6, reaching their highest level since August 2008 amid optimism over the prospects for demand in the coming month.
Steel reinforcing bar (rebar) domestic, ex-whs Eastern China, yuan/tonne
Eastern China (Shanghai): ۵,۰۵۰-۵,۰۹۰ yuan ($771-777) per tonne, up by 100-120 yuan per tonne
Tuesday’s prices is the highest since August 29, 2008 when domestic rebar in China was 4,960-5,250 yuan per tonne.
Market participants said they expect strong demand for rebar from construction sites in April because the weather is typically mild in most regions of China.
Steel mills have had to lower their emissions after environmental inspections by China’s Ministry of Ecology & Environment (MEE), which has led to a reduction in output.
And high steel billet prices have also contributed to increasing production costs for some rerolling mills, sources said.
“Some rerolling mills in Tangshan slowed down their purchases of billet because [profits are limited, with] some even losing money, so it may become harder to raise billet prices as fast as [they increased] in March,” a trader in the city said.
As of 3pm, billet was being traded at 5,040 yuan per tonne including value-added tax in Tangshan, up by 80 yuan per tonne from last Friday.
Shanghai Futures Exchange
The most-traded October rebar futures contract closed at 5,147 yuan per tonne on Tuesday, up by 28 yuan per tonne from 5,119 yuan per tonne a day earlier.
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