Chinese domestic rebar prices continued to rise on Monday October 11 after steel mills increased their list prices, but market participants remain pessimistic about demand and prices for the rest of October.
Eastern China (Shanghai): ۵,۹۴۰-۵,۹۹۰ yuan ($923-931) per tonne, up by 30-40 yuan per tonne
The major eastern China producer Shagang raised its list prices for HRB400 16-25mm rebar by 100 yuan per tonne, to 6,150 yuan per tonne, for orders booked on October 11-20 – compared with the price for bookings made in the preceding 10 days.
An industry analyst said steel mills had raised ex-works prices because production rates have fallen due to power-supply problems.
Sellers followed suit and raised their offers, with some even offering above 6,000 yuan per tonne – although no deals were concluded at that level, sources said.
Most transactions were made at 5,940-5,990 yuan per tonne, they added.
Buyers were less bullish because the downstream market has been weakening.
A local real estate research institute reported that house trading in major cities dropped 33% year on year on October 1-7.
“Power supply is rising gradually, so steel mills – especially those running electric-arc furnaces – could raise their production rates, so the upward trend in rebar prices will be hard to [maintain],” an industry analyst told Fastmarkets.
As of 3pm, billet was being traded at 5,330 yuan per tonne, including value-added tax, in Tangshan – up by 20 yuan per tonne from last Friday.
Shanghai Futures Exchange
The most-traded January rebar futures contract closed at 5,808 yuan per tonne on Monday, up by 58 yuan per tonne from last Friday.
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