Chinese wire rod and rebar prices continue decreasing
2013-03-12 09:39:11 [Print]
BEIJING (Asian Metal) 12 Mar 13 - Prices of wire rod and rebar keep going down in most domestic markets due to continuously soft demand and lowered ex-works price. Observers predict that they will drop further in coming two days.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,850/t (Net weight and VAT included) and RMB3,900/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB235 Φ8mm-10mm from Shaoguan Steel respectively, both down by RMB20/t compared with those of last Friday.
The source reports that the demand has been weak for a long time and many traders’ stock pressure is heavy, so they have to decrease quotations time and time again. Besides, the futures market did not perform well on Monday, with Rb1310 contract down by RMB19/t to RMB3,908/t, so it also imposed negative influence on the spot market. The source sold only 600t of materials on Monday while his target is over 800t.
A construction steel distributor in Chengdu, Sichuan Province said his quotations for rebar HRB400 Φ18mm-22mm from Desheng Steel and high speed wire rod HPB235 Φ8mm-10mm from Longmen Steel are RMB3,840/t (Net weight and VAT include) and RMB3,620/t (Net weight and VAT include) respectively, down by RMB20/t and RMB30/t over those of last trading day.
The source also complains that the market keeps sluggish and the stock remains large, so it is hard to lift offers. “My inventory is still over 20,000t now but the daily sales volume is far less than the target one of 1,000t, besides, other traders are all cutting offers, so I have to follow suit,” he says, adding that many distributors are holding high inventories of more than 20,000t. Therefore, he is not confident of the coming market, deeming prices may go down further.
In Shanghai, a construction steel distributor reports that his offers for rebar HRB335 Φ20mm from Shagang Steel and high speed wire rod HPB235 Φ8mm-10mm from Jiujiang Steel are RMB3,750/t (Theoretical weight and VAT included) and RMB3,500/t (Net weight and VAT included) respectively, RMB20/t and RMB30/t lower than those of previous trading day.
Shagang Steel decreased prices of wire rod and rebar by RMB100/t and RMB250/t respectively for Middle-March production on March 11th, and it worsened the spot market greatly, so as an agent of the mill, the source cut his offers. “The current market price is still lower than the ex-works one, and I could not make profits even though the mill would make subsidy for early March delivery,” says the source. Without any stock in hand, he does not feel good because he is still pessimistic about the coming market in following several days.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,850/t (Net weight and VAT included) and RMB3,900/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB235 Φ8mm-10mm from Shaoguan Steel respectively, both down by RMB20/t compared with those of last Friday.
The source reports that the demand has been weak for a long time and many traders’ stock pressure is heavy, so they have to decrease quotations time and time again. Besides, the futures market did not perform well on Monday, with Rb1310 contract down by RMB19/t to RMB3,908/t, so it also imposed negative influence on the spot market. The source sold only 600t of materials on Monday while his target is over 800t.
A construction steel distributor in Chengdu, Sichuan Province said his quotations for rebar HRB400 Φ18mm-22mm from Desheng Steel and high speed wire rod HPB235 Φ8mm-10mm from Longmen Steel are RMB3,840/t (Net weight and VAT include) and RMB3,620/t (Net weight and VAT include) respectively, down by RMB20/t and RMB30/t over those of last trading day.
The source also complains that the market keeps sluggish and the stock remains large, so it is hard to lift offers. “My inventory is still over 20,000t now but the daily sales volume is far less than the target one of 1,000t, besides, other traders are all cutting offers, so I have to follow suit,” he says, adding that many distributors are holding high inventories of more than 20,000t. Therefore, he is not confident of the coming market, deeming prices may go down further.
In Shanghai, a construction steel distributor reports that his offers for rebar HRB335 Φ20mm from Shagang Steel and high speed wire rod HPB235 Φ8mm-10mm from Jiujiang Steel are RMB3,750/t (Theoretical weight and VAT included) and RMB3,500/t (Net weight and VAT included) respectively, RMB20/t and RMB30/t lower than those of previous trading day.
Shagang Steel decreased prices of wire rod and rebar by RMB100/t and RMB250/t respectively for Middle-March production on March 11th, and it worsened the spot market greatly, so as an agent of the mill, the source cut his offers. “The current market price is still lower than the ex-works one, and I could not make profits even though the mill would make subsidy for early March delivery,” says the source. Without any stock in hand, he does not feel good because he is still pessimistic about the coming market in following several days.
