China’s domestic rebar prices dropped slightly on Wednesday on April 7 on weakening demand and futures losses.
Eastern China (Shanghai): ۵,۰۳۰-۵,۰۷۰ yuan ($769-775) per tonne, down by 20 yuan per tonne
Buyers slowed down procurement activities after prices reached a year-to-date high on Tuesday and then asked for lower prices on Wednesday.
Sellers concluding deals at 5,030-5,070 yuan are still making a good profit because the rebar in their warehouses was bought two weeks ago when the price was 4,700-4,740 yuan per tonne, a trader in Shanghai said.
The drop in rebar futures put additional pressure on the spot rebar price, but market participants expect prices to rebound soon because of strong end-user demand.
Market chatter ***
“April demand of rebar will be higher than March demand because northeast and northwest construction sites resumed normal work from late March, but output is lower due to mills’ concern of emission, so prices will be on an upward trend,” an industry analyst said.
As of 3pm, steel billet was being traded at 5,060 yuan per tonne including value-added tax in Tangshan, up by 20 yuan per tonne from Tuesday.
Plenty of import billet has been delivered to the city over the past couple of weeks due to the price attractiveness and strong demand.
A trader in Tangshan said end users will buy import billet as long as prices are lower than local prices.
The offers of Southeast Asian billet were at $670 per tonne cfr China, equivalent to 4,950 per tonne including 13% of value-added tax fot, sources said.
Shanghai Futures Exchange ***
The most-traded October rebar futures contract closed at 5,117 yuan per tonne on Wednesday, down by 30 yuan per tonne from a day earlier.
این مطلب بدون برچسب می باشد.