China’s rebar markets swinging in typhoon
Construction steel prices in the major markets of China saw some fluctuation in the first half of the week due to low transaction volume and delayed shipments because of Typhoon Talim. The prices of construction steel in the Beijing and Shanghai markets increased on last Thursday (September 1), while prices in Guangzhou registered little activity. However, prices in Guangzhou saw some life at the beginning of this week, increasing RMB 20 – 40/ton ($2-5) by the end of trading on Monday (September 5). The Shanghai and Beijing markets could not maintain their forward momentum, however, reversing direction on Tuesday and Wednesday. The average price of HRB 335 rebar in Beijing, Shanghai and Guangzhou fell from RMB 3'300/ton ($407) on Monday to RMB 3'287/ton ($405) on Wednesday. The average price of HRB400 rebar fell from RMB 3'407/ton ($420) to RMB 3'397/ton (419$) and that of Q235 high-speed wire rod from RMB 3'350/ton ($413) to RMB 3'343/ton ($412). Shanghai The trading volume remained weak in Shanghai for the first half of the week. Therefore, a pessimistic view prevailed among traders, causing slight declines in prices despite the slightly short supply situation. Influenced by Typhoon Talim in the southeastern regions, some shipments to Shanghai will be delayed. The delay, however, is not expected to have a great impact on the Shanghai market. A batch of Ma Steel 12 mm diameter HRB400 rebar is expected in Shanghai. It will ease the short supply situation, but 14 mm diameter rebar will continue to remain in short supply. Beijing Prices in Beijing generally remained stable on Monday, falling later due to lack of transaction activity. The prices were down RMB 40/ton from Monday to Wednesday. There has been a large price difference between the prices given by traders and actual prices obtained upon negotiations. Beginning in October, Beijing will enter a low season in terms of the construction steel market, and this will obviously have an impact on sales. Guangzhou The first half of the week was slow for Guangzhou. Not many transactions were carried out on Monday, yet the prices increased around RMB 40/ton from Friday due to the short supply situation. The increases in Beijing and Shanghai also had an influence in the price increase. Typhoon Talim affected the arrival situation of some batches to Guangzhou; therefore, the prices remained unchanged from Monday to Tuesday and increased slightly (around RMB 10/ton) on Wednesday. The delay in shipments exacerbated the short supply situation. However, traders are worried about what will happen once the delayed batches arrive. SteelOrbis Shanghai Office