Chinese domestic wire rod and rebar traders pessimistic
2012-09-07 09:14:38 [Print]
BEIJING (Asian Metal) 7 Sep 12 - Seeing the downward price trend and the sluggish market, most traders of wire rod and rebar in China lose confidence in the coming market. Observers predict that prices are likely to continue decreasing in following several days.
East China: The sales manager of Haihui Trading in Shanghai revealed that he does not hold any stocks in hand now, so all orders would be delivered from steel mills directly. His current quotation for rebar HRB335 Φ18mm-22mm from Yonggang Steel is only RMB3,370/t (Theoretical weight and VAT included) and that of high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel is RMB3,330/t (Net weight and VAT included), both down by RMB20/t compared with those of last working day.
The source is an agent of Yonggang Steel, with a regular monthly sales target of 5,000t. “Although I can fulfill the target, I am not pleased because the ex-works price is higher than the market price,” sighed the source, adding that the current ex-works price of rebar HRB335 Φ14-25mm from Yonggang Steel is as high as RMB3,580/t, and he is burdening a heavy loss. Besides, the source is not optimistic about the market performance in following days of September because of the decreasing price of rebar in the futures market, with that of Rb1301 contract as low as about RMB3,200/t.
South China: The sales manager of Jinhongfeng Trading in Guangzhou, Guangdong Province reported to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm from Shaoguan Steel and high speed wire rod Q235 Φ8mm-10mm from Xiangtan Steel are RMB3,640/t and RMB3,470/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those of last transaction day.
As an agent of Shaoguan Steel, the source’s regular sales task is over 10,000tpm, but the market situation is getting worse, so he has reduced the volume to 3,000tpm. Besides, after accomplishing the task, the source would like to purchase materials from other traders in the market for some profits rather than from Shaoguan Steel. “The price from the mill is much higher, and it is hard to promote sales or to make profits,” said the source, adding that his current stock is only 200-300t. As regards the coming market, the source is pessimistic, deeming prices will go down further without strong demand in the context of oversupply.
Southwest China: The sales manager of Xinke Trading in Chengdu, Sichuan Province revealed to Asian Metal that current prices of rebar HRB400 Φ18mm-25mm from Chuanwei Steel and high speed wire rod Q235 Φ6.5mm-10mm from Zhongyang Steel in Shanxi Province are RMB3,810/t and RMB3,480/t (Net weight and VAT included) respectively, down by RMB10/t and RMB20/t compared with those on previous day.
The source revealed that because most traders have cut stocks greatly recently, the current inventory in Chengdu is comparatively low and traders do not want to decrease quotations sharply. However, the demand from customers is weak and the source’s daily sales volume is less than 100tpd while the regular level in the peak season is 200-300tpd at least. Without any stock in hand, the source will keep watching the market cautiously and does not plan to replenish the inventory in a short run.
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 RMB3,280/t and RMB3,260/t (Net weight and VAT included) respectively, both down by RMB10/t compared with that of last working day.
After three days’ sharp decline, markdowns of wire rod and rebar narrowed on Thursday. Nevertheless, traders are still prudent, in view of the ongoing decreasing price trend of the raw material-steel billet. In Tangshan, Hebei Province, the price of billet Q235 150mm*150mm has went down to RMB2,710-2,730/t (Net weight and VAT included), with a total markdown of RMB280/t from last weekend. Steel mills are also cutting prices actively. Fushun Steel in Liaoning Province, Jinsheng Steel in Shanxi Province, Jiuquan Steel in Gansu Province all lowered prices of wire rod and rebar by RMB10-30/t on Thursday. Consequently, the source is worried that market prices are likely to maintain the downward trend in following several days.
East China: The sales manager of Haihui Trading in Shanghai revealed that he does not hold any stocks in hand now, so all orders would be delivered from steel mills directly. His current quotation for rebar HRB335 Φ18mm-22mm from Yonggang Steel is only RMB3,370/t (Theoretical weight and VAT included) and that of high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel is RMB3,330/t (Net weight and VAT included), both down by RMB20/t compared with those of last working day.
The source is an agent of Yonggang Steel, with a regular monthly sales target of 5,000t. “Although I can fulfill the target, I am not pleased because the ex-works price is higher than the market price,” sighed the source, adding that the current ex-works price of rebar HRB335 Φ14-25mm from Yonggang Steel is as high as RMB3,580/t, and he is burdening a heavy loss. Besides, the source is not optimistic about the market performance in following days of September because of the decreasing price of rebar in the futures market, with that of Rb1301 contract as low as about RMB3,200/t.
South China: The sales manager of Jinhongfeng Trading in Guangzhou, Guangdong Province reported to Asian Metal that current prices of rebar HRB335 Φ18mm-25mm from Shaoguan Steel and high speed wire rod Q235 Φ8mm-10mm from Xiangtan Steel are RMB3,640/t and RMB3,470/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those of last transaction day.
As an agent of Shaoguan Steel, the source’s regular sales task is over 10,000tpm, but the market situation is getting worse, so he has reduced the volume to 3,000tpm. Besides, after accomplishing the task, the source would like to purchase materials from other traders in the market for some profits rather than from Shaoguan Steel. “The price from the mill is much higher, and it is hard to promote sales or to make profits,” said the source, adding that his current stock is only 200-300t. As regards the coming market, the source is pessimistic, deeming prices will go down further without strong demand in the context of oversupply.
Southwest China: The sales manager of Xinke Trading in Chengdu, Sichuan Province revealed to Asian Metal that current prices of rebar HRB400 Φ18mm-25mm from Chuanwei Steel and high speed wire rod Q235 Φ6.5mm-10mm from Zhongyang Steel in Shanxi Province are RMB3,810/t and RMB3,480/t (Net weight and VAT included) respectively, down by RMB10/t and RMB20/t compared with those on previous day.
The source revealed that because most traders have cut stocks greatly recently, the current inventory in Chengdu is comparatively low and traders do not want to decrease quotations sharply. However, the demand from customers is weak and the source’s daily sales volume is less than 100tpd while the regular level in the peak season is 200-300tpd at least. Without any stock in hand, the source will keep watching the market cautiously and does not plan to replenish the inventory in a short run.
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 RMB3,280/t and RMB3,260/t (Net weight and VAT included) respectively, both down by RMB10/t compared with that of last working day.
After three days’ sharp decline, markdowns of wire rod and rebar narrowed on Thursday. Nevertheless, traders are still prudent, in view of the ongoing decreasing price trend of the raw material-steel billet. In Tangshan, Hebei Province, the price of billet Q235 150mm*150mm has went down to RMB2,710-2,730/t (Net weight and VAT included), with a total markdown of RMB280/t from last weekend. Steel mills are also cutting prices actively. Fushun Steel in Liaoning Province, Jinsheng Steel in Shanxi Province, Jiuquan Steel in Gansu Province all lowered prices of wire rod and rebar by RMB10-30/t on Thursday. Consequently, the source is worried that market prices are likely to maintain the downward trend in following several days.
