China construction steel weekly recap (September 19-23)

China construction steel weekly recap (September 19-23)

During the week ending September 23, 2005, construction steel prices in Beijing, Shanghai and Guangzhou were trending downward. Transaction activity in all three markets left something to be desired. By the close of trading on Friday (September 23), the average of HRB335 rebar prices in Beijing, Shanghai and Guangzhou had fallen RMB 54/ton ($7) over the week to end at RMB 3’133/ton ($386); HRB400 rebar had fallen RMB 44/ton ($6) to RMB 3’283/ton ($405); and Q235 high-speed wire rod had fallen RMB 37/ton ($5) to RMB 3’203/ton ($395). For details, please see the following: Shanghai Prices continued to present a downward trend and HRB400 rebar prices saw a large range of decrease. The Shanghai market was not brisk, especially for HRB400 rebar market. According to the statistics, by Friday (September 23), the rebar inventory in Shanghai was 230’000 tons, up 10’000 tons compared to that of the prior week. Wire rod inventory was down slightly at 40’000 tons. HRB335 Rebar The opening prices on Monday (September 19) were RMB 20/ton ($2) lower than the closing prices on Friday (September 16), as the actual deal pries went down slightly over the weekend. Prices then slipped RMB 10/ton each day from Tuesday through Thursday. Prices were quoted at various levels on Friday, and five leading traders stopped selling their products. For third-rate brand names, other traders cut their prices slightly by RMB10/ton ($1). HRB400 Rebar On Friday (September 16), leading traders of Pingxiang Steel started reducing their prices by RMB20/ton ($2). Upon opening the following Monday, Ma Steel’s prices continued to decline by a small amount, and saw a larger decline on Wednesday and Thursday. It was reported that there would be a batch of products produced by Beitai, most of which are HRB400 rebar, arriving in Shanghai. Q235 Wire Rod Pingxiang Steel cut its prices for high-speed wire rod by RMB10/ton ($1) on Monday (September19). For other brand names, prices kept decreasing by RMB10/ton ($1) on a daily basis Tuesday through Thursday. On Friday, prices fell RMB20/ton ($2). The price gap between wire rod and high-speed wire rod narrowed to RMB 50/ton ($6). Beijing On rebar side, the extent of decline in the Beijing construction steel market was mild. Rebar prices opened at the closing price of the previous week (September 12-16). After that, prices saw a minor reduction and a better transaction situation. Wire rod prices declined by RMB20/ton ($2) on a daily basis for most of the week, but were stable on Friday (September 23). HRB335 Rebar At the beginning of the week, the HRB335 rebar inventory was reasonable after having been supplemented the previous week. Upon opening on Monday, 12-14mm diameter HRB335 rebar prices dropped by RMB 40/ton ($5), while those of other specifications remained stable. On Tuesday, prices of traders did not change much, but the actual deal price fell RMB20/ton ($2). The price of 16-25mm diameter rebar was relatively stable following a decline of RMB 3’080/ton ($380). HRB400 Rebar For 28-32mm diameter rebar, prices on Tuesday (September 20) were down RMB10/ton ($1), while those of other specifications remained stable. 12-14mm diameter rebar prices saw a large decrease, RMB 50/ton ($6), while other specifications saw only minor declines. HRB400 rebar prices exhibited a slight drop on Thursday, but were stable on Friday. The tight supply of HRB440 rebar was somewhat alleviated. Batches of products produced by steelmakers such as Shougang and Tangshan Steel arrived in Beijing on September 17 and 18. The HRB440 rebar inventory was a little bit high. Q235 Wire Rod Wire rod prices remained constant, but the actual deal prices were weak. According to some traders, there was ample high-speed wire rod in the market, but the demand was weak and prices were softened. According to some market players, the capital problem has not improved much. It was difficult to get payments. A majority of traders stated that a successful capital link should be maintained. It was reported that some steelmakers started cutting their output. Guangzhou Prices in Guangzhou declined across the board. HRB335 rebar saw a large decrease. HRB400 rebar and wire rod prices fell slightly. There was a noticeable lack of transaction activity in Guangzhou. HRB335 Rebar Upon opening on Monday (September 19), prices decline and the actual deal prices were down RMB 40-50/ton ($5-6) compared to the previous week. From Tuesday through Thursday, the actual deal prices kept declining by small amounts, but were stable on Friday. The decline during the week was large and hardly any transactions were concluded. HRB400 Rebar HRB400 rebar showed a smaller decrease compared to that of HRB335 rebar. Prices on Monday slid RMB 20/ton ($2) compared to the closing price of the previous week. On Tuesday, traders held a “wait and see” attitude towards the market. Prices of that day held stable. HRB400 rebar prices further declined by RMB 20/ton ($2) on Wednesday. For some brand names, prices dropped RMB 20/ton ($2) on Thursday. Prices of other brand names were in a downward trend. On Friday, prices in the market were quoted at different levels, but the prevailing prices remained unchanged. Q235 Wire Rod Upon opening on Monday, the mainstream market prices were down RMB 30/ton ($4) compared to the closing price of the previous week. Prices on Tuesday held steady. On Wednesday, prices of wire rod fell by RMB 30/ton ($4), while those of high-speed wire rod were down RMB 20/ton ($4). Some brand names, whose prices declined slightly, cut their prices as their previous prices did not reflect the current market condition. The prevailing market prices were stable. It was reported that products in other regions were arriving in Guangzhou all throughout the week. According to some traders, the newly arrived products totaled 160’000 tons. The demand slightly increased compared to that of the same period of last year; however, the profit margins were poor and even leaning towards losses.