The decline in China’s domestic rebar prices came to a halt on Monday April 19 amid a recovery in demand from end users in the construction sector, but losses in the futures market resulted in generally weak restocking demand.
Eastern China (Shanghai): 5,000-5,030 yuan ($767-771) per tonne, unchanged
End users raised procurement rates over the weekend after prices stabilized and because their inventories were low, market sources said.
Increased demand from construction sites prevented rebar prices from dropping further.
Trading houses, however, lacked buying interest because they were not confident prices would rise.
Apparent consumption of rebar in China is said to have reached high levels of around 4.5 million tonnes per week for the past few weeks, so trading houses see no chance for demand to rise sharply in the near term and any changes in prices will be relatively mild, which gives them limited chance to make money if they restock now, a trader told Fastmarkets.
Market chatter ***
“Rebar price increases in the past one month were not only because of stronger demand, but also on the ample liquidity and speculation. The National Development and Reform Commission has given their opinion that commodity prices have no solid base to maintain long-term increase, so they may issue some measures to curb prices, including those for rebar, ” an industry analyst said.
As at 3pm, billet was being traded at 4,960 yuan per tonne including value-added tax in Tangshan, unchanged from last Friday.
Shanghai Futures Exchange ***
The most-traded October rebar futures contract closed at 5,082 yuan per tonne on Monday, down by 34 yuan per tonne from last Friday.
این مطلب بدون برچسب می باشد.