Persistent rebar price declines in China’s domestic market June 9 had finally cooled down the production frenzy among China’s 137 mills, with their rebar output having reversed from a 15-week climb-up, down to 3.96 million tonnes over June 11-17 and more lines had been on maintenance, Mysteel’s weekly survey showed.
周刊：中国由$ 5 /牛逼提高螺纹钢出口价格2020年6月23日
Over June 13-19, China’s steel exporters had raised their offering prices of the B500B 18-25mm rebar by another $5/tonne on week to $441/t FOB Shanghai port on average, in contrast to the recent softening in China’ domestic steel prices together with the weakening in demand in the rainy season.
China’s price of Q235 4.75mm hot-rolled coil (HRC) rose further over June 15-19 by Yuan 34/tonne ($4.8/t) on week to Yuan 3,788/t including the 13% VAT as of June 19, mainly thanks to the firmer fundamentals for flats compared with long steel, Mysteel’s data showed.
The most-traded rebar contract on the Shanghai Futures Exchange for October delivery gained another Yuan 19/tonne ($2.7/t) on week and closed the daytime trading session on Friday at Yuan 3,645/t, as prices of imported iron ore in China’s spot market continued to hover at a high level, Mysteel Global learned.
China’s price of Q235 4.75mm hot-rolled coil (HRC) had been increasing since early May, up another Yuan 15/tonne ($2.1/t) on week to Yuan 3,754/t including the 13% VAT as of June 12, mainly due to the further decreases in stocks as downstream demand had been stable, according to Mysteel’s market survey.
Weekly rebar output among China’s 137 steelmakers hit the highest in record since Mysteel commented the survey in February 2015, totalling 3.99 million tonnes over June 4-10, or up for the 15 straight week by another 0.8% on week, though domestic steel demand has shown signs of receding since the second week of May on the more frequent and heavy rainfalls especially in South China.
China’s hot-rolled coil prices remained largely steady amid disciplined production pace, but rebar prices softened moderately over June 8-12, as demand especially in South China had been severely affected by the heavy rainfalls while production continued trending up, though the high steelmaking raw material prices had been lending support to the domestic steel prices for now.
钢筋output from China’s 137 steelmakers under Mysteel’s weekly survey continued to grow for the 14th week over May 28-June 3 but up merely 0.35% or 13,900 tonnes on week to 3.95 million tonnes, which the Chinese market sources interpreted as a possible sign that output may have reached the turning point to decline from the “ceiling” level.
China’s domestic steel prices strengthened over June 1-5, and the market sentiment remained positive, even though steel demand showed signs of divergence by region, mainly because of rising raw material costs especially iron ore and the production restriction in Tangshan, North China’s Hebei province.