Chinese wire rod and rebar prices hard to go up
2013-05-21 09:29:37 [Print]
BEIJING (Asian Metal) 21 May 13 - Prices of wire rod and rebar in most domestic markets are still running at a low level and the chance for a continuous increase is slim suppressed by the weak demand and unfavorable raw material market. Insiders predict that the construction steel market will remain slow in following two days.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,670/t (Net weight and VAT included) and RMB3,700/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 RMB10/t compared with those of last trading day.
The source disclosed that although the rebar futures market performed well on early Monday with a markup of over RMB60/t, most traders in the spot market did not follow suit because they were confronted with insufficient demand from buyers. “The market is quite sluggish today due to the rainstorm here, and most outside projects have stopped the operation,” explained the source. Being worried about the market in the rain season, the source has reduced his stock to 3,000t from the regular level of over 5,000t.
A construction steel distributor in Chengdu, Sichuan Province said prices of rebar HRB400 Φ18mm-22mm from Chuanwei Steel and high speed wire rod HPB300 Φ8mm-10mm from Liheng Steel are RMB3,720/t (Net weight and VAT include) and RMB3,630/t (Net weight and VAT include) respectively, the same as those of last trading day.
“The market in Chengdu does not make much progress but it is not worse either,” he said, adding that the markdown or markup of prices is between RMB20-30/t, which is quite small. Besides, the demand from downstream industry is limited and his daily sales volume is 300-400t while the best level in the high season could reach 800-1,000t. In his opinion, the construction steel market is unlikely to make obvious changes in coming several 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 RMB3,460/t (Net weight and VAT include) and RMB3,450/t (Net weight and VAT include) respectively, with the former decreasing by RMB10/t while the latter stable over those of last trading day.
As Shagang Steel, the most influential construction steel producer in East China will release the new price policy on Tuesday, traders in the spot market would not like to change quotations before that. Meanwhile, the demand from buyers is still soft and the price of the raw material-iron ore keeps on a downward trend with that of 63.5%min imported from India down to USD126.5-127.5/dt, so the finished steel market is powerless to make improvements. The source’s daily sales volume is over 1,000t but still less than the target one of 2,000t.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,670/t (Net weight and VAT included) and RMB3,700/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 RMB10/t compared with those of last trading day.
The source disclosed that although the rebar futures market performed well on early Monday with a markup of over RMB60/t, most traders in the spot market did not follow suit because they were confronted with insufficient demand from buyers. “The market is quite sluggish today due to the rainstorm here, and most outside projects have stopped the operation,” explained the source. Being worried about the market in the rain season, the source has reduced his stock to 3,000t from the regular level of over 5,000t.
A construction steel distributor in Chengdu, Sichuan Province said prices of rebar HRB400 Φ18mm-22mm from Chuanwei Steel and high speed wire rod HPB300 Φ8mm-10mm from Liheng Steel are RMB3,720/t (Net weight and VAT include) and RMB3,630/t (Net weight and VAT include) respectively, the same as those of last trading day.
“The market in Chengdu does not make much progress but it is not worse either,” he said, adding that the markdown or markup of prices is between RMB20-30/t, which is quite small. Besides, the demand from downstream industry is limited and his daily sales volume is 300-400t while the best level in the high season could reach 800-1,000t. In his opinion, the construction steel market is unlikely to make obvious changes in coming several 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 RMB3,460/t (Net weight and VAT include) and RMB3,450/t (Net weight and VAT include) respectively, with the former decreasing by RMB10/t while the latter stable over those of last trading day.
As Shagang Steel, the most influential construction steel producer in East China will release the new price policy on Tuesday, traders in the spot market would not like to change quotations before that. Meanwhile, the demand from buyers is still soft and the price of the raw material-iron ore keeps on a downward trend with that of 63.5%min imported from India down to USD126.5-127.5/dt, so the finished steel market is powerless to make improvements. The source’s daily sales volume is over 1,000t but still less than the target one of 2,000t.
