Chinese wire rod and rebar prices show an upward trend
2013-05-14 09:00:27 [Print]
BEIJING (Asian Metal) 14 May 13 - Prices of wire rod and rebar in many domestic regions rebound again after the decline last week. The performance in the rebar futures market makes some progress, so traders in the spot market pick up some confidence. Insiders predict that prices will go up in following one or two days.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,700/t (Net weight and VAT included) and RMB3,710/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB235 Φ8mm-10mm from Shaoguan Steel respectively, with the former up by RMB10/t while the latter unchanged compared with those of last trading day.
The source said prices of construction steel went down late last week after two days’ increase because of the soft demand. Most traders kept watching the market early Monday, but afternoon, they began raising quotations supported by the good performance in the futures market. The price of Rb1310 contract kept moving up on Monday and was closed at RMB3,656/t with a markup of RMB40/t. Therefore, traders lifted offers. However, the demand from downstream buyers has not released much and the source’s current daily sales volume is 400-500t, still much less than the best level of over 1,000t in the high season. The source deemed that the markup in following two days will be limited.
A construction steel distributor in Tianjin said prices of rebar HRB400 Φ18mm-22mm and high speed wire rod HPB300 Φ8mm-10mm from HBIS are RMB3,580/t (Net weight and VAT include) and RMB3,570/t (Net weight and VAT include) respectively, the same as those of last trading day.
According to the source, the price of the raw material-steel billet Q235 150mm*150mm in Tangshan, Hebei Province went down by RMB20/t last weekend to RMB3,120-3,140/t (Net weight and VAT included), pulling down the finished steel market and traders’ confidence was weakened slightly. Therefore, although some traders’ sales volume increased to some extent on Monday, the general market performance did not make obvious improvements. The source said his sales volume on Monday was around 2,000t, still less than the best level of over 3,000t, and he thought the market price is hard to go up much in following two days.
In Shanghai, a construction steel distributor said his quotations for rebar HRB400 Φ18mm-22mm from Shente Steel and high speed wire rod HPB235 Φ8mm-10mm from Jiujiang Steel are RMB3,480/t (Net weight and VAT include) and RMB3,450/t (Net weight and VAT include) respectively, with the former increasing by RMB10/t while the latter stable over those of last trading day.
The source also said because of the improved performance in the futures market, traders in the spot market are more active in lifting quotations. Nevertheless, the demand was not as strong as traders expected, so some distributors kept a wait-and-see attitude while some try to raise offers. Besides, Shagang Steel announced stable list prices of construction steel for middle-May delivery on last Saturday, which supported the market to some extent. Revealing a sales volume of around 1,000t on Monday against the target one of 1,500t, the source said the current market is not stable yet and the price is hard to keep moving up for long.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,700/t (Net weight and VAT included) and RMB3,710/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB235 Φ8mm-10mm from Shaoguan Steel respectively, with the former up by RMB10/t while the latter unchanged compared with those of last trading day.
The source said prices of construction steel went down late last week after two days’ increase because of the soft demand. Most traders kept watching the market early Monday, but afternoon, they began raising quotations supported by the good performance in the futures market. The price of Rb1310 contract kept moving up on Monday and was closed at RMB3,656/t with a markup of RMB40/t. Therefore, traders lifted offers. However, the demand from downstream buyers has not released much and the source’s current daily sales volume is 400-500t, still much less than the best level of over 1,000t in the high season. The source deemed that the markup in following two days will be limited.
A construction steel distributor in Tianjin said prices of rebar HRB400 Φ18mm-22mm and high speed wire rod HPB300 Φ8mm-10mm from HBIS are RMB3,580/t (Net weight and VAT include) and RMB3,570/t (Net weight and VAT include) respectively, the same as those of last trading day.
According to the source, the price of the raw material-steel billet Q235 150mm*150mm in Tangshan, Hebei Province went down by RMB20/t last weekend to RMB3,120-3,140/t (Net weight and VAT included), pulling down the finished steel market and traders’ confidence was weakened slightly. Therefore, although some traders’ sales volume increased to some extent on Monday, the general market performance did not make obvious improvements. The source said his sales volume on Monday was around 2,000t, still less than the best level of over 3,000t, and he thought the market price is hard to go up much in following two days.
In Shanghai, a construction steel distributor said his quotations for rebar HRB400 Φ18mm-22mm from Shente Steel and high speed wire rod HPB235 Φ8mm-10mm from Jiujiang Steel are RMB3,480/t (Net weight and VAT include) and RMB3,450/t (Net weight and VAT include) respectively, with the former increasing by RMB10/t while the latter stable over those of last trading day.
The source also said because of the improved performance in the futures market, traders in the spot market are more active in lifting quotations. Nevertheless, the demand was not as strong as traders expected, so some distributors kept a wait-and-see attitude while some try to raise offers. Besides, Shagang Steel announced stable list prices of construction steel for middle-May delivery on last Saturday, which supported the market to some extent. Revealing a sales volume of around 1,000t on Monday against the target one of 1,500t, the source said the current market is not stable yet and the price is hard to keep moving up for long.
