China’s domestic rebar prices increased by $20 per tonne on Monday April 26 and surpassed the $800-per-tonne mark amid high trading activity, sources said.
Eastern China (Shanghai): ۵,۲۰۰-۵,۲۳۰ yuan ($801-806) per tonne, up by 130 yuan per tonne
The northern China steel production hub of Tangshan asked steel mills to suspend their sinter machines from April 25-27 for better air quality, the municipal government said.
This news created a bullish sentiment in the ferrous futures market and pushed the rebar contract to a historical high of 5,475 yuan per tonne during the day, its highest since it started trading on March 27, 2009.
The strong futures market, in turn, pushed up spot prices and some buyers raised their procurement rates, sources said.
Market concerns of further price rises were one reason for higher purchases and replenishment ahead of the Labor Day holiday (May 1-5) was another, market sources said.
Market chatter ***
“The production restrictions in Tangshan and environmental inspections in other regions provided material for futures traders to speculate on prices but the fundamentals of supply and demand has little changed and end users are suffering from the soaring prices. So rebar prices will not keep rising as sharp as today,” an industry analyst said.
As of 3pm, steel billet was being traded at 4,980 yuan per tonne including value-added tax in Tangshan, up by 30 yuan per tonne from last Friday.
Shanghai Futures Exchange ***
The most-traded October rebar futures contract closed at 5,371 yuan per tonne on Monday, up by 72 yuan per tonne from last Friday.
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