Chinese wire rod and rebar market worsens
2013-06-25 08:54:55 [Print]
BEIJING (Asian Metal) 25 Jun 13 - Prices of wire rod and rebar in most domestic markets keep unchanged or move down further, and participants are losing more confidence when the financial market is getting worse. Insiders predict that prices of wire rod and rebar will go down again in coming two days.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,490/t (Net weight and VAT included) and RMB3,560/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB300 Φ8mm-10mm from Shaoguan Steel respectively, both down by RMB10/t compared with those of last Friday.
The source said the market performance was unpleasant last week because the demand kept decreasing although the price did not move down much. “The situation is hard to be changed in a short term because the financial market is tightening, and it will be more difficult for steel traders to loan from banks,” he said. Revealing a daily sales volume of 500t or so against the best level of over 1,000t in the high season, the source believed that prices of wire rod and rebar will go down further.
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 Dazhou Steel are RMB3,640/t (Net weight and VAT included) and RMB3,670/t (Net weight and VAT included) respectively, both down by RMB10/t over those of last trading day.
The source sighed that the financial market collapsed on Monday because of the tightening capital flow from the central bank, and Shanghai composite index fell sharply by over 5%, hitting the lowest level in recent 30 months. Therefore, steel market traders were less confident. In addition, the total supply from mills is still sufficient and few mills would like to cut outputs, so the source worried about the coming market. Currently, his inventory is around 5,000t while the regular one is 8,000t, as he thought it is unwise to hold large stocks when the price is on a decreasing trend.
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 stable at RMB3,210/t (VAT included) and RMB3,280/t (Net weight and VAT included) respectively.
The futures market got worse early Monday, and the price of Rb1310 contract kept moving down after the opening quotation, and the decline reached RMB43/t by end of the trading day. However, because prices in some other surrounding markets such as Ningbo and Hangzhou are unchanged, traders in Shanghai would not like to reduce offers. Considering that the price of the raw material-steel billet Q235 150mm*150mm in Tangshan, Hebei Province went down by RMB50/t from last weekend to this Monday, the source deemed that finished steel prices are much likely to decrease further.
In Guangzhou, Guangdong Province, a construction steel trader quoted RMB3,490/t (Net weight and VAT included) and RMB3,560/t (Net weight and VAT included) for rebar HRB335 Φ18mm-25mm and high speed wire rod HPB300 Φ8mm-10mm from Shaoguan Steel respectively, both down by RMB10/t compared with those of last Friday.
The source said the market performance was unpleasant last week because the demand kept decreasing although the price did not move down much. “The situation is hard to be changed in a short term because the financial market is tightening, and it will be more difficult for steel traders to loan from banks,” he said. Revealing a daily sales volume of 500t or so against the best level of over 1,000t in the high season, the source believed that prices of wire rod and rebar will go down further.
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 Dazhou Steel are RMB3,640/t (Net weight and VAT included) and RMB3,670/t (Net weight and VAT included) respectively, both down by RMB10/t over those of last trading day.
The source sighed that the financial market collapsed on Monday because of the tightening capital flow from the central bank, and Shanghai composite index fell sharply by over 5%, hitting the lowest level in recent 30 months. Therefore, steel market traders were less confident. In addition, the total supply from mills is still sufficient and few mills would like to cut outputs, so the source worried about the coming market. Currently, his inventory is around 5,000t while the regular one is 8,000t, as he thought it is unwise to hold large stocks when the price is on a decreasing trend.
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 stable at RMB3,210/t (VAT included) and RMB3,280/t (Net weight and VAT included) respectively.
The futures market got worse early Monday, and the price of Rb1310 contract kept moving down after the opening quotation, and the decline reached RMB43/t by end of the trading day. However, because prices in some other surrounding markets such as Ningbo and Hangzhou are unchanged, traders in Shanghai would not like to reduce offers. Considering that the price of the raw material-steel billet Q235 150mm*150mm in Tangshan, Hebei Province went down by RMB50/t from last weekend to this Monday, the source deemed that finished steel prices are much likely to decrease further.
