Posted on 11 Dec 2023
Rebar production among the 137 Chinese steelmakers regularly tracked by Mysteel remained basically unchanged over November 30-December 6, totalling 2.61 million tonnes, higher by a minor 0.1% or 2,200 tonnes on week, according to the weekly survey result. During the prior week, output among the sampled mills had climbed by 2.4% on week, as Mysteel Global reported.
Survey respondents pointed out that while many steel producers in East China had ramped up rebar output after their profit margins had recovered, others in Southwest and Central China had commenced maintenance work on steelmaking facilities or suspended operations, with the result that output remained essentially stable overall.
During the period, the rebar rolling capacity utilization rate among the surveyed producers remained unchanged on week at 57.2%, and their operational rate nudged down 0.7 percentage point on week to 42.6%, Mysteel's data showed.
Chinese spot rebar prices had shown signs of strengthening last week, lifted by better sentiment and resilient raw materials prices. As of December 7, the country's national price of HRB400E 20mm dia rebar, for example, was assessed by Mysteel at Yuan 4,078/tonne ($570/t) including the 13% VAT, rising by Yuan 26/t from one week earlier.
In tandem, the Mysteel SEADEX 62% Australian Fines index for imported iron ore prices firmed by $4.3/dmt during the same period to $135.95/dmt CFR Qingdao, hitting a 1.5-year high.
The spot trading volume of construction steel including rebar, wire rod and bar-in-coil among the 237 Chinese steel trading houses under Mysteel's tracking increased by 4.9% or 6,992 tonnes/day on week to average 150,972 t/d over December 1-7, as speculative buying among traders picked up due to rising rebar futures prices.
On the other hand, a disparity in rebar inventories emerged between the 137 mills and among traders in the 35 Chinese cities monitored by Mysteel, with the former mounting for the second week, up 3.1% or 52,800 tonnes on week to a one-month high of 1.74 million tonnes as of December 6, while the latter reversed down 0.8% or 30,400 tonnes on week to 3.57 million tonnes as of December 7.
Source:Mysteel Global
