Prices down in China's main construction steel markets

Prices down in China’s main construction steel markets

Prices for many types of construction steel fell Thursday in China's major markets. While prices in the Beijing and Guangzhou markets showed overall declines, the transaction situation in Beijing got better. In Shanghai, rebar prices were down but wire rod prices were stable. The average price of HRB335 rebar in the Beijing, Shanghai and Guangzhou markets was RMB 3'263/ton($402)down RMB24/ton ($3)from yesterday. The average price of HRB400 rebar fell RMB 7/ton ($0.8) to RMB 3'390/ton($418)while Q235 high-speed wire rod prices fell RMB 16/ton ($2) to RMB 3'327/ton ($410). For details, please see the following: Shanghai HRB335 rebar prices saw a large decrease, HRB400 rebar prices showed a slight decline and wire rod prices were stable. For second-rate brand names, the prevailing market price for 20mm diameter HRB335 rebar was RMB 3'120/ton ($385) falling RMB 30/ton ($4) compared to Wednesday. The mainstream market price for 20mm diameter HRB400 rebar was RMB 3'350/ton ($413) while that of 6.5mm diameter Q235 high-speed wire rod was RMB 3'330/ton ($411), both of which were unchanged from Wednesday. The current small diameter HRB335 rebar inventory has been increasing while demand has been decreasing. The price difference between 12-14mm and 20mm diameter HRB335 rebar further narrowed to RMB10/ton ($1). Some traders released uniform price quotations for 12-25mm diameter rebar. 22mm diameter rebar was in short supply. Demand for 12-meter HRB335 rebar slightly increased. For HRB400 rebar, 14mm and 22mm diameter rebar was in short supply. A batch of 25mm diameter rebar arrived in Shanghai, bringing the price down RMB20/ton ($2) to RMB 3'360/ton ($414). Q235 high-speed wire rod prices showed a slight decline while prices of other wire rod were basically stable. Beijing Traders hesitated to offer their price quotations. Construction steel material prices in the Beijing market decreased comprehensively. HRB400 rebar posted a notable decline. Transaction volume, however, increased as a whole. The prevailing market price of 20mm diameter HRB335 rebar was RMB 3'240/ton ($400) falling RMB20/ton($2) from Wednesday. 20mm diameter HRB400 rebar fell RMB 30/ton ($4) to RMB 3'330/ton ($411) while 6.5mm Q235 high-speed wire rod was down RMB 20/ton ($2) to RMB 3'280/ton ($404). On Thursday, traders quoted their prices late. Medium and small-scale traders held a “wait-and-see” attitude towards the market. They quoted their prices after the release of prices from leading traders. HRB335 rebar prices decreased RMB20/ton ($2). HRB400 rebar prices further decreased and showed a similar price trend to that of HRB335 rebar. There was little 32mm diameter HRB400 rebar in the market and its price stood at RMB 3'380/ton ($417) RMB 10-20/ton ($1-2) higher than that of 28mm diameter rebar. Q235 wire rod prices saw a slight decline. 10mm diameter rebar was in short supply and its price was RMB 20/ton ($2) higher than that of 6.5-8mm. As October approaches there is an increasing demand for construction steel material in Beijing construction sites. The transaction volume in Beijing has increased accordingly. Guangzhou Guangzhou construction steel material prices comprehensively decreased. A conspicuous lack of transactions brought an end to the upward price trend. For second-rate brand names, 20mm diameter HRB335 rebar price was RMB 3'420/ton ($422) down RMB 30/ton ($4) compared to that of Wednesday. The prices of 20mm HRB400 rebar and Q235 high-speed wire rod fell RMB 20/ton. Thursday's price for HRB400 rebar stood at RMB 3'460/ton ($427), while that of Q235 high-speed wire rod was RMB 3'380/ton ($417). Leading traders decreased their price quotations for HRB335 rebar by RMB 20-30/ton ($2-4). Presently, the price quotation for Tangshan Steel's 16-25mm diameter rebar is at RMB 3'420/ton ($422). However, some traders sold their products at RMB 3'400/ton ($420). There were few transactions concluded as the price was in a downward trend. The recent transaction volume was not good (except last Saturday), far lower than what would normally be expected. Many products were in short supply in Guangdong Province, with the exception of local brand names. For HRB400 rebar, the range of decrease was RMB 10-20/ton ($1-2), which was smaller than that of HRB335rebar. Wire rod prices fell RMB 20-30/ton ($2-4). Very little product from elsewhere in China arrived in the Guangzhou market due to the typhoon. A local batch of products did make its way to market, however. It was reported that large quantities of products from other places in the country would reach Guangzhou on September 15. SteelOrbis Shanghai Office