Chinese domestic wire rod and rebar prices down
2012-08-21 09:02:22 [Print]
BEIJING (Asian Metal) 21 Aug 12 - Prices of wire rod and rebar in most domestic markets move down again without the support of strong demand. Observers predict that prices will remain the downward trend in a short term and the market performance will keep unsatisfying.
East China: The sales manager of Kaisiyi Trading in Shanghai revealed that his quotations for rebar HRB335 Φ18mm-22mm from Zhongtian Steel and high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel are RMB3,550/t (Theoretical weight and VAT included) and RMB3,570/t (Net weight and VAT included) respectively, with the former down by RMB10/t compared with that of last working day and the latter unchanged.
The source said the market in Shanghai remains dull because the demand from buyers is still soft and his sales volume of wire rod and rebar is less than 200tpd while the best level in the high season is over 500tpd. Being short of confidence in the coming market, the source decreased offers. In his opinion, the market is hard to make progress in coming several days when the month end is approaching.
South China: The sales manager of Lingyi Investing Company in Guangzhou, Guangdong Province reported to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm and high speed wire rod Q235 Φ8mm-10mm from Shaoguan Steel are RMB3,780/t and RMB3,790/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those of last transaction day.
The source revealed that because the market demand does not increase at all, most traders in Guangzhou are not confident of the market. Meanwhile, steel mills are forcing traders to accomplish the sales task one hundred percent in the slow season, which imposes heavy pressure on them. Therefore, sellers softened offers. The source said the current daily sales volume is only about 200t, one third of the regular level in the peak season, so he is quite worried about the market in a short term.
Southwest China: The sales manager of Jingcheng Trading in Chengdu, Sichuan Province revealed to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm from Chuanwei Steel and high speed wire rod Q235 Φ6.5mm-10mm from Liheng Steel are RMB3,760/t and RMB3,660/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those on the previous day.
The source said most traders’ sales performance became worse from late last week when prices showed a downward trend. Currently, most large-sized traders’ sales volumes are 400-500tpd and his is only about 200tpd. With the approach of the month end, most participants will be confronted with pressure of repaying loans to bank, so he deemed that prices of wire rod and rebar are likely to go down further when traders are eager to collect money.
North China: The sales manager of Hengyuan Trading in Beijing told Asian Metal that his quotations for rebar HRB335 Φ18mm-25mm and high speed wire rod Q235 Φ6.5mm-10mm from HBIS are RMB3,480/t and RMB3,510/t (Net weight and VAT included) respectively, decreasing by RMB20/t and RMB10/t compared with those on the previous day.
Because the futures market performance is getting worse with decreasing prices, traders in the spot market are less confident and their quotations are moving down time and time again. The price of Rb1301 contract in the futures market declined by RMB25/t on Monday to RMB3,607/t. In addition, seeing the downward price trend, buyers are more inactive in purchasing materials but waiting for a further price decline, so it is likely to deteriorate the situation. The source predicted that prices will move down slightly further in coming two days.
East China: The sales manager of Kaisiyi Trading in Shanghai revealed that his quotations for rebar HRB335 Φ18mm-22mm from Zhongtian Steel and high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel are RMB3,550/t (Theoretical weight and VAT included) and RMB3,570/t (Net weight and VAT included) respectively, with the former down by RMB10/t compared with that of last working day and the latter unchanged.
The source said the market in Shanghai remains dull because the demand from buyers is still soft and his sales volume of wire rod and rebar is less than 200tpd while the best level in the high season is over 500tpd. Being short of confidence in the coming market, the source decreased offers. In his opinion, the market is hard to make progress in coming several days when the month end is approaching.
South China: The sales manager of Lingyi Investing Company in Guangzhou, Guangdong Province reported to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm and high speed wire rod Q235 Φ8mm-10mm from Shaoguan Steel are RMB3,780/t and RMB3,790/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those of last transaction day.
The source revealed that because the market demand does not increase at all, most traders in Guangzhou are not confident of the market. Meanwhile, steel mills are forcing traders to accomplish the sales task one hundred percent in the slow season, which imposes heavy pressure on them. Therefore, sellers softened offers. The source said the current daily sales volume is only about 200t, one third of the regular level in the peak season, so he is quite worried about the market in a short term.
Southwest China: The sales manager of Jingcheng Trading in Chengdu, Sichuan Province revealed to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm from Chuanwei Steel and high speed wire rod Q235 Φ6.5mm-10mm from Liheng Steel are RMB3,760/t and RMB3,660/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those on the previous day.
The source said most traders’ sales performance became worse from late last week when prices showed a downward trend. Currently, most large-sized traders’ sales volumes are 400-500tpd and his is only about 200tpd. With the approach of the month end, most participants will be confronted with pressure of repaying loans to bank, so he deemed that prices of wire rod and rebar are likely to go down further when traders are eager to collect money.
North China: The sales manager of Hengyuan Trading in Beijing told Asian Metal that his quotations for rebar HRB335 Φ18mm-25mm and high speed wire rod Q235 Φ6.5mm-10mm from HBIS are RMB3,480/t and RMB3,510/t (Net weight and VAT included) respectively, decreasing by RMB20/t and RMB10/t compared with those on the previous day.
Because the futures market performance is getting worse with decreasing prices, traders in the spot market are less confident and their quotations are moving down time and time again. The price of Rb1301 contract in the futures market declined by RMB25/t on Monday to RMB3,607/t. In addition, seeing the downward price trend, buyers are more inactive in purchasing materials but waiting for a further price decline, so it is likely to deteriorate the situation. The source predicted that prices will move down slightly further in coming two days.
