Posted on 16 Sep 2024
China's rebar prices enjoyed another pick-up in both spot and futures markets on September 11, and spot buying for the long steel also edged up on the same day.
On Wednesday, China's national price of HRB400E 20mm diameter rebar under Mysteel's assessment rose again to Yuan 3,291/tonne ($462.2/t) including the 13% VAT, higher by another Yuan 26/t on day.
The uptrend in rebar derivatives also extended throughout yesterday, with the Shanghai Futures Exchange's most-traded January rebar contract gaining a larger Yuan 50/t or 1.62% from the prior day's settlement price to close the daytime trading session at Yuan 3,137/t.
Currently, the smooth destocking of old-spec rebar and the recovering downstream demand in the traditional peak season for steel consumption are supporting China's construction steel market to some extent, market watchers noted.
By September 11, old-standard rebar accounted for only 17.63% of total rebar stocks across domestic markets, lower by another 1.59% on day, Mysteel's daily survey showed.
However, the market remains under pressure because the rebound in steel consumption has been slower than expected, according to market sources. They also noted that end-buyers favored lower-priced rebar more, while sellers mainly focused on quick sales due to a lack of confidence in the near-term market.
The daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 Chinese trading houses Mysteel regularly tracks increased by 5,949 tonnes/day or 5% on day to reach 124,105 t/d on Wednesday.
As for semis, the Q235 150mm square billet price in Tangshan in North China's Hebei province under Mysteel's assessment also rose by Yuan 40/t on day to Yuan 2,830/t EXW including the VAT on Wednesday.
Source:Mysteel Global
