Chinese wire rod and rebar market prospect dim
2012-09-17 09:02:09 [Print]
BEIJING (Asian Metal) 17 Sep 12 - Prices of wire rod and rebar in most domestic markets show a downward trend after three days’ increase. The demand from end users is as weak as before, so traders and insiders are not optimistic about the coming market. Observers predict that prices are unlikely to remain the upward trend this week.
East China: The sales manager of Hualei Trading in Shanghai quoted RMB3,550/t (Theoretical weight and VAT included) and RMB3,400/t (Net weight and VAT included) respectively for rebar HRB335 Φ18mm-22mm from Yonggang Steel and high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel, down by RMB10/t and RMB20/t compared with those of last working day.
According to the source, prices of wire rod and rebar began decreasing from Thursday after several days’ increase, because of the soft demand from end users. “I still do not believe the market performance could get enhanced just stimulated by the higher offer from traders,” said the source, adding that his sales volume on Friday was only 100-200t while the target volume is over 400t. In his opinion, the demand may increase at the end of this month, with the approach of the National Day holiday which is from October 1st to 7th, when buyers would build up stocks for the holiday.
South China: The sales manager of Hanyan Trading 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 RMB3,720/t and RMB3,650/t (Net weight and VAT included) respectively, down by RMB30/t and RMB20/t compared with those of last transaction day.
The source also reported that the market demand increased only on Monday when the price showed a strong upward trend, and then it decreased and traders had to lower quotations accordingly. Meanwhile, being pessimistic about the coming market, most traders in Guangzhou have decreased stocks greatly and the source only holds a low inventory of 2,000-3,000t at present, only one fourth of the regular level. Besides, he hopes the market would make some progress in October.
Southwest China: The sales manager of Hongheng 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 in Shanxi Province are RMB3,730/t and RMB3,530/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those on previous day.
“The current inventory of wire rod and rebar in Chengdu is much lower than the regular level, at around 300,000t, because the market is sluggish and traders dare not take risks,” said the source, adding that he has cleared out all stocks and he only places orders with mills when buyers purchases materials from him. The source does not think the demand from end users will increase much in the context of worldwide slow economic situation.
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 RMB3,390/t and RMB3,350/t (Net weight and VAT included) respectively, both equaling to those of last working day.
The source complained that the upward price trend only maintained for three days because the futures market performance was worsened in last two days of this week and the demand in the spot market was weaker. He thought all attempts traders did to raise price is in vain without the rigid demand. However, the price of steel billet in Tangshan, Hebei Province began rebounding late Friday by over RMB100/t, so he still predicted that the price in the spot market will go up in a short term.
East China: The sales manager of Hualei Trading in Shanghai quoted RMB3,550/t (Theoretical weight and VAT included) and RMB3,400/t (Net weight and VAT included) respectively for rebar HRB335 Φ18mm-22mm from Yonggang Steel and high speed wire rod Q235 Φ6.5mm-10mm from Jiujiang Steel, down by RMB10/t and RMB20/t compared with those of last working day.
According to the source, prices of wire rod and rebar began decreasing from Thursday after several days’ increase, because of the soft demand from end users. “I still do not believe the market performance could get enhanced just stimulated by the higher offer from traders,” said the source, adding that his sales volume on Friday was only 100-200t while the target volume is over 400t. In his opinion, the demand may increase at the end of this month, with the approach of the National Day holiday which is from October 1st to 7th, when buyers would build up stocks for the holiday.
South China: The sales manager of Hanyan Trading 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 RMB3,720/t and RMB3,650/t (Net weight and VAT included) respectively, down by RMB30/t and RMB20/t compared with those of last transaction day.
The source also reported that the market demand increased only on Monday when the price showed a strong upward trend, and then it decreased and traders had to lower quotations accordingly. Meanwhile, being pessimistic about the coming market, most traders in Guangzhou have decreased stocks greatly and the source only holds a low inventory of 2,000-3,000t at present, only one fourth of the regular level. Besides, he hopes the market would make some progress in October.
Southwest China: The sales manager of Hongheng 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 in Shanxi Province are RMB3,730/t and RMB3,530/t (Net weight and VAT included) respectively, both down by RMB20/t compared with those on previous day.
“The current inventory of wire rod and rebar in Chengdu is much lower than the regular level, at around 300,000t, because the market is sluggish and traders dare not take risks,” said the source, adding that he has cleared out all stocks and he only places orders with mills when buyers purchases materials from him. The source does not think the demand from end users will increase much in the context of worldwide slow economic situation.
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 RMB3,390/t and RMB3,350/t (Net weight and VAT included) respectively, both equaling to those of last working day.
The source complained that the upward price trend only maintained for three days because the futures market performance was worsened in last two days of this week and the demand in the spot market was weaker. He thought all attempts traders did to raise price is in vain without the rigid demand. However, the price of steel billet in Tangshan, Hebei Province began rebounding late Friday by over RMB100/t, so he still predicted that the price in the spot market will go up in a short term.
