China’s rebar price up, sales hit intra-year high
On September 27, China’s national price of HRB400E 20mm dia rebar under Mysteel’s assessment recovered by Yuan 26/tonne ($3.6/t) from the prior day to Yuan 4,148/t including the 13% VAT, while spot sales of construction steel soared to reach the highest so far this year.
China’s iron ore prices waver, but demand firm
China’s prices of imported iron ore for both port inventories and seaborne cargoes fluctuated during September 19-23, but steelmaker-demand for ore has been firm and had improved further last week, according to market sources.
Near-term outlook on China’s key steel products
Below is the brief near-term outlook for the five key steel products Mysteel shares on a weekly basis, drawing upon the results of related surveys and communication with Chinese market participants.
1.Rebar & wire rod: The prices of these longs may strengthen over September 26-30, as most end-users will stock up some tonnage ahead of China’s National Day holiday over October 1-7. Rebar stocks at 429 warehouses in 132 Chinese cities under Mysteel’s tracking declined by 1.4% on week to 7.5 million tonnes as of September 22.
2.Hot-rolled coil: This price may slip in the week ending September 30, as most end-users procure only to meet their immediate demand, while most traders are willing to offload some volumes even at lower prices.
3.Cold-rolled coil: The price may be narrowly range-bound this week, as some end-users will replenish some stocks ahead of the weeklong holiday, while supply from mills hovers high. By September 21, CRC output among 137 Chinese steelmakers under Mysteel’s tracking stood at 3.1 million tonnes, 26,700 tonnes higher on week.
4.Medium plate: The price is likely to increase over September 26-30, as market sentiment has improved with the decline in stocks at commercial warehouses across China.
5.Sections: Prices are expected to soften this week, as mills’ output hovers at a high level, while demand from end-users remains sluggish. The Q235 150mm square billet price in North China’s Tangshan under Mysteel’s assessment eased by Yuan 30/tonne ($4.2/t) from September 18 to reach Yuan 3,630/t EXW and including the 13% VAT as of September 25.
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