Chinese wire rod and rebar prices likely to go up
2013-06-05 09:16:56 [Print]
BEIJING (Asian Metal) 5 Jun 13 - Prices of wire rod and rebar in most domestic regions keep unchanged after a sharp decline last week, but insiders predict that they will rebound slightly in coming two days supported by the higher billet price and the improved rebar futures market.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,510/t (Net weight and VAT included) and RMB3,620/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB300 Φ8mm-10mm from Guangzhou Steel respectively, both unchanged compared with those of last trading day.
The source said the sales performance on Monday improved and his sales volume increased to around 700t from previous level of 400-500t per day last week. Meanwhile, the price of rebar in the futures market hiked by RMB90/t and it also encouraged the spot market. Therefore, traders in Guangzhou stopped reducing offers on Tuesday. He predicted that the price of construction steel is likely to go up slightly in coming two days.
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 RMB3,750/t (Net weight and VAT include) and RMB3,600/t (Net weight and VAT include) respectively, equaling to those of last trading day.
The source said prices of wire rod and rebar in Chengdu are still high because some mills such as Chengdu Steel halted the production of construction steel and the supply of branded materials is a little tight. Besides, prices in some other regions like Shanghai have increased. Therefore, although the demand from downstream industries is not strong and he only took a small order of 300t on Tuesday, the source deemed that prices of wire rod and rebar will keep firm or move up slightly in the near future.
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 RMB3,210/t (Net weight and VAT include) and RMB3,280/t (Net weight and VAT include) respectively, with the former unchanged while the latter up by RMB50/t compared with those of last trading day.
“The main reason is the price increase in the futures market and the price rebound of the raw material-billet,” said the source. The price of Rb1310 contract in the futures market moved up by RMB19/t again on Tuesday after a sharp increase of RMB90/t on Monday. In addition, the price of billet Q235 150mm*150mm in Tangshan, Hebei Province began rebounding from Monday, so traders of wire rod and rebar in Shanghai were quite active in lifting quotations. Revealing a regular sales volume of 400-500tpd, the source deemed that prices of construction steel are likely to go up further in following one or two days, but the markup would be limited in the traditional plum rain season.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,510/t (Net weight and VAT included) and RMB3,620/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB300 Φ8mm-10mm from Guangzhou Steel respectively, both unchanged compared with those of last trading day.
The source said the sales performance on Monday improved and his sales volume increased to around 700t from previous level of 400-500t per day last week. Meanwhile, the price of rebar in the futures market hiked by RMB90/t and it also encouraged the spot market. Therefore, traders in Guangzhou stopped reducing offers on Tuesday. He predicted that the price of construction steel is likely to go up slightly in coming two days.
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 RMB3,750/t (Net weight and VAT include) and RMB3,600/t (Net weight and VAT include) respectively, equaling to those of last trading day.
The source said prices of wire rod and rebar in Chengdu are still high because some mills such as Chengdu Steel halted the production of construction steel and the supply of branded materials is a little tight. Besides, prices in some other regions like Shanghai have increased. Therefore, although the demand from downstream industries is not strong and he only took a small order of 300t on Tuesday, the source deemed that prices of wire rod and rebar will keep firm or move up slightly in the near future.
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 RMB3,210/t (Net weight and VAT include) and RMB3,280/t (Net weight and VAT include) respectively, with the former unchanged while the latter up by RMB50/t compared with those of last trading day.
“The main reason is the price increase in the futures market and the price rebound of the raw material-billet,” said the source. The price of Rb1310 contract in the futures market moved up by RMB19/t again on Tuesday after a sharp increase of RMB90/t on Monday. In addition, the price of billet Q235 150mm*150mm in Tangshan, Hebei Province began rebounding from Monday, so traders of wire rod and rebar in Shanghai were quite active in lifting quotations. Revealing a regular sales volume of 400-500tpd, the source deemed that prices of construction steel are likely to go up further in following one or two days, but the markup would be limited in the traditional plum rain season.
